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 per meter moved. An analyst has prepared the following distances and flow matrices: Distances (meters) Prom/To I I II III II III 10 20 10
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 per meter moved. An analyst has prepared the following distances and flow matrices: Distances (meters) Prom/To I I II III II III 10 20 10
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text: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 per meter moved. An analyst has prepared the following
distances and flow matrices:
Distances (meters)
II
- 10
From/To
I
II
III
Flows (loads per week)
From/To X Y
X
Z
III
20
10
-60 90
160
40
110 140
What are total weekly costs for the least costly process layout?
Answer choices:
a. $3,150
b. $4,500
c. $2,800
d. $4,000
e. $3,500
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