100s of Workpieces Moved between Work Areas Each Year Plan A M D F M 18 2 D 4 - F 18 P Distances between Work Areas (Departments) in Feet M D 20 12 8. D 10 F 4 - 2. Distances between Work Areas (Departments) in Feet Plan B M D F 20 8 12 D 10 6 F - What is the cost of this layout? Marrs now wants you to evaluate Plan C, which also switches milling (M) and drilling (D), below. Distance between Work Areas (Departments) in Feet Plan C M D M 20 10 6. D 8. 12 F 4 - | P

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
Question
A Missouri job shop bas four departments- machining (M), dipping in a chemical bath (D), finishing (F), and plating (P)-assigned to four work areas. The operations manager, Mary
Marrs, bas gathered the following data for this job shop as it is currently laid out (Plan A).              It costs $0.50 to move workpiece foot in the job shop.
Marrs's goal is to find a layout that bas the lowest materialhandling
cost.
a) Detemline cost of the current layout, Plan A, from the given data.
b) One alternative is to switch those departments with the high loads, namely, finishing (F) and plating (P), which alters the distance between them and machining (M) and dipping (D), as follows:                                                                                                                                                                     What is the cost of this layout?
Marrs now wants you to evaluate Plan C, which also switches milling (M) and dri lling (D), below.                                                                                                                                                                               What is the cost of this layout?
d) Which layout is best from a cost perspective?
100s of Workpieces Moved between Work Areas Each
Year Plan A
M
D
F
M
18
2
D
4
-
F
18
P
Distances between Work Areas (Departments) in Feet
M
D
20
12
8.
D
10
F
4
-
2.
Transcribed Image Text:100s of Workpieces Moved between Work Areas Each Year Plan A M D F M 18 2 D 4 - F 18 P Distances between Work Areas (Departments) in Feet M D 20 12 8. D 10 F 4 - 2.
Distances between Work Areas (Departments) in Feet Plan B
M
D
F
20
8
12
D
10
6
F
-
What is the cost of this layout?
Marrs now wants you to evaluate Plan C, which also switches
milling (M) and drilling (D), below.
Distance between Work Areas (Departments) in Feet Plan C
M
D
M
20
10
6.
D
8.
12
F
4
-
|
P
Transcribed Image Text:Distances between Work Areas (Departments) in Feet Plan B M D F 20 8 12 D 10 6 F - What is the cost of this layout? Marrs now wants you to evaluate Plan C, which also switches milling (M) and drilling (D), below. Distance between Work Areas (Departments) in Feet Plan C M D M 20 10 6. D 8. 12 F 4 - | P
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