Consider four departments labeled A, B, C, and D. Each department is represented by a 1 1 square. The following data are given:

The location of department A is fixed. Answer the following questions using CRAFT with two-way exchanges only.

a. List all the department pairs that CRAFT would consider exchanging. (Do not compute their associated cost.)

b. Compute the actual cost of exchanging departments C and D.

c. Given that department A is fixed and that each department must remain as a 1 1 square, is the layout obtained by exchanging departments C and D optimum? Why or why not? (Hint: Examine the properties of the resulting layout and consider the objective function of CRAFT.)

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Flow-Between Matrix A = B C D 9 A Initial Layout B A B C C D D - 051 - Unit Cost Matrix A B 210 - 203 ABCD 300 C D 0 1 - 0 300