A Chicago job-shop operates with four departments€”machining, drilling, assembly, and painting. The shop€™s production manager, Karen Grillo, has data on the distances between pairs of departments and the number of loads between them. This information is shown in the following tables. The cost of moving one unit of the material one foot is US$1. The distance between departments in feet are as follows:

The loads moved between each pair of work centers per week are as follows:

1. What is the total materials handling cost for this layout?

2. Assembly and painting and assembly and machining are two pairs of departments with high loads moved between them. An improved layout can be obtained by switching the assembly and painting departments, which will alter the distance between certain pairs of department. What is the total materials handling cost for this revised layout?

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