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Using the information in the following table and assuming that the cost of transferring units between 2 adjacent departments is $5/unit and between 2 non-adjacent

Using the information in the following table and assuming that the cost of transferring units between 2 adjacent departments is $5/unit and between 2 non-adjacent departments is $8/unit,

  1. Calculate the cost for the existing layout.
  2. Design a layout that will have a lower cost and calculate the cost.

Load Summary Chart

To

From

A

B

C

D

E

F

A

15

50

125

B

20

25

75

C

50

120

120

D

60

25

E

50

100

F

110

100

40

Existing Layout

A

B

C

D

E

F

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