The Flow and Distance Data in the Table Below Were

question 104

Essay

The flow and distance data in the table below were input into a layout software program, and solved by "pairwise comparison." That solution called for assignments A-4, B-1, C-3, and D-2, with a total movement of 2430. Verify that result. Is that solution optimal?
Can you offer an improved solution?
What is the total movement of your alternate solution?
$\begin{array}{|l|r|r|r|r|r|}\hline&&&&& \text { Fixed } \\\text { Flow Table } & \text { A } & \text { B } & \text { C } & \text { D } &\text{room}\\\hline\mathrm{A} & 0 & 5 & 8 & 3 \\\hline \mathrm{B} & 0 & 0 & 7 & 6 \\\hline \mathrm{C} & 0 & 2 & 0 & 9 \\\hline \mathrm{D} & 5 & 12 & 4 & 0 \\\hline & & & & \\\hline \text { Distance } & & & & \\\text { Table } & \text { Room 1 } & \text { Room 2 } & \text { Room 3 } & \text { Room 4 } \\\hline \text { Room 1 } & 0 & 30 & 60 & 80 \\\hline \text { Room 2 } & 30 & 0 & 30 & 50 \\\hline \text { Room 3 } & 60 & 30 & 0 & 20 \\\hline \text { Room 4 } & 80 & 50 & 20 &0\\\hline\end{array}$

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Definitions:

Variable Costing

An accounting method that only allocates variable costs to inventory, treating fixed costs as period expenses that are charged to the income statement in the period they are incurred.

Absorption Costing

A method of inventory costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overheads - in the cost of a unit of product.

Contribution Format

A financial statement layout that separates fixed costs from variable costs to highlight the contribution margin of a business.

Absorption Costing

A financial tracking method that brings together all costs of production—direct materials, direct labor, and all overhead, both variable and fixed—inclusion in the price of a product.