The Trip Matrix and the Current Block Plan for a Company

question 108

Multiple Choice

The trip matrix and the current block plan for a company follow.The two cells in the block plan marked with "ES" are empty space.Assume that material is moved according to rectilinear distances and that the distance between adjacent centers is one unit.It costs $1 to move one unit of material over one unit of distance. Trips Between Centers
Current Block Plan
To reduce materials-handling costs,the following revised block plan is being considered.
Compute the "total cost" of each plan (current and revised) ,along with their cost difference.The total cost savings of changing over to the revised block plan is

• A)less than or equal to 50.
• B)more than 50 but less than or equal to 80.
• C)more than 80 but less than or equal to 110.
• D)more than 110.

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Definitions:

Control Over Venture

The power or ability to govern the financial and operating policies of an entity so as to benefit from its activities.

Equal Resources

The concept that entities or individuals have access to the same amount of resources, enabling equitable opportunities.

Proportionately Adjusted Net Income

Net income adjusted to reflect a company's share in the profits or losses of its associates or joint ventures.

Contractual Agreement

A legally binding agreement between two or more parties.