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A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new facility. They
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 $0.50 per load meter moved. An analyst has prepared the following flow and distance matrices: Distances (meters) From/To I II III I 10 20 II III 10 Flows (loads per week). From/To X Y 2 X 0 80 Y 30 150 2 100 130 What are total weekly costs for an optimum layout?
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