A company needs to locate three departments (I, II, and III) in the three areas (A, B, and C) of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.40 per load per meter moved. An analyst has prepared the following distances and flow matrices: Distance (meters) Flows (loads per week) From/To A B C From/To I II III A - 30 40 I - 30 110 B - 60 II 90 - 70 C - III 70 60 - In what areas, A, B, and C, should departments I, II, and III be located that minimize the total cost of moving loads over the distance? (Identify assignments and total cost) (use excel to show formuals used)
- A company needs to locate three departments (I, II, and III) in the three areas (A, B, and C) of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.40 per load per meter moved. An analyst has prepared the following distances and flow matrices:
Distance (meters) Flows (loads per week)
From/To A B C From/To I II III
A - 30 40 I - 30 110
B - 60 II 90 - 70
C - III 70 60 -
In what areas, A, B, and C, should departments I, II, and III be located that minimize the total cost of moving loads over the distance? (Identify assignments and total cost) (use excel to show formuals used)
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