A Company Needs to Locate Three Departments (X, Y, and Z)

question 75

Multiple Choice

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 meter moved. An analyst has prepared the following flow and distance matrices:
What are total weekly costs for an optimum layout?

• A) $2,600
• B) $3,600
• C) $6,200
• D) $7,200
• E) $8,200

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