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

question 125

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 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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