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The Executive Director of the free clinic has asked the operations analyst to assess all options to determine which clinic layout will minimize transportation costs.

The Executive Director of the free clinic has asked the operations analyst to assess all options to determine which clinic layout will minimize transportation costs. The table below displays expected flow and distance information, based on observation of the Lynchburg location. Switching room locations will cost $8,000 each, with the exception of the dental and vision care areas, which will cost $15,000 to move. It is estimated to cost $0.50 to travel a foot

a. Which clinic layout will minimize transportation costs?

b. Calculate the cost to change the layout of the clinic to the solution in part (a).

c. How long will it take to recover the costs to change the layout of the clinic? Make a recommendation as to whether the clinic should change layouts.

image text in transcribed

Dental Care Vision Care Community Pharmacy Women's Health Mental Health Primary Care 25 60 50 100 80 35 150 125 75 50 300 195 120 80 30 From/To Distance (in feet) Dental Care Vision Care Community Pharmacy Women's Health Mental Health Primary Care Trips (per month) Dental Care Vision Care Community Pharmacy Women's Health Mental Health Primary Care 365 420 125 88 6 2 15 75 45 90 275 39 4 2 40 5 30 8 90 62 12 8 65 140 105 65 215 25 80 125 Dental Care Vision Care Community Pharmacy Women's Health Mental Health Primary Care 25 60 50 100 80 35 150 125 75 50 300 195 120 80 30 From/To Distance (in feet) Dental Care Vision Care Community Pharmacy Women's Health Mental Health Primary Care Trips (per month) Dental Care Vision Care Community Pharmacy Women's Health Mental Health Primary Care 365 420 125 88 6 2 15 75 45 90 275 39 4 2 40 5 30 8 90 62 12 8 65 140 105 65 215 25 80 125

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