A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.50 per load meter moved. An analyst has prepared the following flow and distance matrices: $\begin{array}{l}
\text { Distances (meters) } \quad\quad\quad\quad\quad\quad \text { Flows (loads per week }\
\begin{array}{rlll}
\text { From/To } & \text { I } & \text { II } & \text { III } \
\hline \text { I } & - & 10 & 20 \
\text { II } & & - & 10 \
\text { III } & & & -
\end{array}\quad\quad
\begin{array}{rlll}
\text { From/To } & \mathrm{X} & \mathrm{Y} & \mathrm{Z} \
\hline \mathrm{X} & - & 0 & 80 \
\mathrm{Y} & 30 & - & 150 \
\mathrm{Z} & 100 & 130 & -
\end{array}
\end{array}$ What is the layout that will minimize the total distance loads will be moved each week?
A) X in 1; Y in 2; Z in 3
B) X in 1; Z in 2; Y in 3
C) Y in 1; X in 2; Z in 3
D) Z in 1; X in 2; Y in 3
E) Z in 1; Y in 2; X in 3

Question

Quizplus · Accepted Answer

The layout X in I, Z in II, and Y in III minimizes the transportation cost by placing departments with higher flow rates closer together, reducing the total distance loads are moved.

A Company Needs to Locate Three Departments (X, Y, and Z)