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

question 35

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: $\begin{array}{l}\text { Distances (meters) } \quad\quad\quad\quad\quad\quad \text { Flows (loads per week }\\\begin{array}{rlll}\text { From/To } & \text { I } & \text { II } & \text { III } \\\hline \text { I } & - & 10 & 20 \\\text { II } & & - & 10 \\\text { III } & & & -\end{array}\quad\quad\begin{array}{rlll}\text { From/To } & \mathrm{X} & \mathrm{Y} & \mathrm{Z} \\\hline \mathrm{X} & - & 0 & 80 \\\mathrm{Y} & 30 & - & 150 \\\mathrm{Z} & 100 & 130 & -\end{array}\end{array}$ What is the layout that will minimize the total distance loads will be moved each week?

• A) X in 1; Y in 2; Z in 3
• B) X in 1; Z in 2; Y in 3
• C) Y in 1; X in 2; Z in 3
• D) Z in 1; X in 2; Y in 3
• E) Z in 1; Y in 2; X in 3

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Definitions:

Prejudiced Employer

An employer who harbors preconceived opinions or judgments about certain groups of people, which may unfairly influence hiring or workplace practices.

African Americans

A demographic group in the United States consisting of individuals with partial or total ancestry from any of the black racial groups of Africa.

Distributing Income

The process by which income is allocated among various economic agents, such as individuals, businesses, and government sectors.

Utility

In the field of economics, utility is defined as the comprehensive satisfaction gained from the consumption of a product or service.