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?

a. $2,600
b. $6,200
c. $3,600
d. $8,200

2. Which layout will minimize the total distance loads will be moved each week?

a. X in 1; Y in 2; Z in 3
b. Y in 1; X in 2; Z in 3
c. X in 1; Z in 2; Y in 3
d. Z in 1; X in 2; Y in 3
e. Z in 1; Y in 2; X in 3

$7,200