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:
Distances (meters)
From/To I II III
I – 10 20
II – 10
III –
Flows (loads per week)
From/To X Y Z
X – 0 80
Y 30 – 150
Z 100 130 –
1. What are total weekly costs for an optimum layout?
Multiple Choice
$2,600
$6,200
$3,600
$8,200
$7,200
2.
Which layout will minimize the total distance loads will be moved each week?
Multiple Choice
X in 1; Y in 2; Z in 3
Y in 1; X in 2; Z in 3
X in 1; Z in 2; Y in
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