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.
Chapter5: Network Models
Section5.5: Shortest Path Models
Problem 30P
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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
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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