
Concept explainers
a)
To determine: The cost of plan A layout.
Introduction: Process layout refers to the plan or graphical representation about the design of the floor of a plant. It helps the firm to improve the efficiency of the design and it would help to improve the location of the departments.
a)

Answer to Problem 2P
The cost of plan A layout is $23,400.
Explanation of Solution
Given information:
Given the distances in feet from one department to the other as follows
And the work pieces moved from one department to the other as follows
Calculation of cost of plan A layout:
Calculate the total weekly material handling cost, MH cost using the formula
where
Substitute into the equation (1), the various values to obtain
Add all the costs to obtain the total material handling costs
Hence, the cost of plan A layout is $23,400.
b)
To determine: The cost of the layout.
b)

Answer to Problem 2P
The cost of the layout is $20,600.
Explanation of Solution
Given information:
Given the distances in feet from one department to the other as follows
And the work pieces moved from one department to the other as follows
Calculation of cost of the layout:
After switching departments F and P, calculate the total material handling cost, MH cost using the formula
Calculate the total weekly material handling cost, MH cost using the formula
where
Substitute in equation (2), the various values to obtain
Add all the costs to obtain the total material handling costs
Hence, the cost of the layout is $20,600.
c)
To determine: The cost of the layout.
c)

Answer to Problem 2P
The cost of the layout is $22,000.
Explanation of Solution
Given information:
Given the distances in feet from one department to the other as follows
And the work pieces moved from one department to the other as follows
Calculation of cost of the layout:
After switching departments M and D, calculate the total material handling cost, MH cost using the formula
Calculate the total weekly material handling cost, MH cost using the formula
where
Substitute in equation (3), the various values to obtain
Add all the costs to obtain the total material handling costs
Hence, the cost of the layout is $22,000.
d)
To determine: The best layout in terms of cost perspective.
d)

Explanation of Solution
Best layout in terms of cost perspective:
From above calculations, the cost perspective, Plan B which has the total material handling costs of
Hence, Plan B is the best layout.
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Chapter 9 Solutions
Principles Of Operations Management
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