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
e) $7,200
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