A Firm of Six Departments Has the Following Trip Matrix

question 4

Essay

A firm of six departments has the following trip matrix and current block plan of all departments: $$\begin{array}{l}\begin{array} { | l | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Dept } \\\text { Name }\end{array} & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \\\hline \text { A } & - & 7 & 8 & 9 & 0 & 2 \\\hline B & & - & 6 & 3 & 0 & 10 \\\hline C & & & - & 2 & 12 & 0 \\\hline D & & & & - & 3 & 0 \\\hline \text { E } & & & & & - & 6 \\\hline \text { A } & & & & & & - \\\hline\end{array}\\\begin{array} { | l | l | l | } \hline \mathrm { A } & \mathrm { B } & \mathrm { C } \\\hline \mathrm { D } & \mathrm { E } & \mathrm { F } \\\hline\end{array}\end{array}$$
a. What is the load- distance score for the current layout? (Assume rectilinear distance and that the distance between departments A and B is one unit of distance.)
b. What would be the load- distance score for the following layout? $$\begin{array} { | l | l | l | } \hline A & C & E \\\hline \mathrm { D } & \mathrm { B } & \mathrm { F } \\\hline\end{array}$$

---

Definitions:

Interest

The cost of borrowing money, often expressed as a percentage of the amount borrowed, paid to the lender over a specified period.

Time-Value

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Money

Any item that is generally acceptable to sellers in exchange for goods and services.

Present Value

A calculation of today's value of money to be received in the future or ongoing cash flows, based on a given rate of return.