An Insurance Claims Processing Center Has Six Work Centers, Any

question 150

Essay

An insurance claims processing center has six work centers, any of which can be placed into any of six physical departmental locations. Call the centers 1, 2, 3, 4, 5, and 6, and the departments A, B, C, D, E, and F. The current set of assignments is A-3, B-1, C-6, D-2, E-4, and F-5.
The (symmetric) matrix of departmental distances, in meters is shown below.
The matrix of work flow (estimated trips per day) among centers is shown below.
The firm estimates that each trip costs approximately $4. What is the cost of the current assignment?

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Definitions:

Halo Effect

A cognitive bias where an observer's overall impression of a person, company, brand, or product influences their feelings and thoughts about that entity's character or properties.

Permanent Change

An alteration in a system or environment that is enduring and not reversible.

Mental Models

Internal representations of the world that people use to understand and interact with their environment.

Broad Worldviews

Wide-ranging perspectives or ways of understanding and interpreting the world and the experiences within it.