Given the Following Process Layout Data for Locating Four Departments

question 102

Short Answer

Given the following process layout data for locating four departments (A, B, C, and D) in four areas (1, 2, 3, and 4): $\begin{array}{l}\text { Distances (meters) } \quad\quad\quad\quad\quad\quad \text { Flows (loads per week }\\\begin{array}{rlll}\text { From/To } & 1 & 2 & 3 & 4 \\\hline 1 & - & 50 & 100 & 150 \\2 & & - & 50 & 100 \\3 & & & - & 50 \\4 & & & & -\end{array}\quad\quad\begin{array}{rlll}\text { From/To } & \text { A } & \text { B } & \text { C } & \text { D } \\\hline \text { A } & - & 10 & 40 & 50 \\\text { B } & 30 & - & 10 & 70 \\\text { C } & 60 & 10 & - & 40 \\\text { D } & 30 & 50 & 20 & -\end{array}\end{array}$ If transportation costs are $.25 per load per foot moved, what are total monthly costs for an optimum layout?

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Definitions:

Confidence Limits

Confidence limits define the range within which a population parameter is estimated to lie with a certain level of confidence.

Standard Error

A measure of the dispersion or spread of sample means around the population mean.

Confidence Interval

A range of values, derived from a data set, that is likely to contain the value of an unknown population parameter.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter.