Question

Can someone please help solve?

A Missouri job shop has four departments-machining (M), dipping in a chemical bath (D), finishing (F), and plating ( P manager, Mary Marrs, has gathered the following data for the movement of material assigned to four work areas. The operations The number of workpieces moved yearly between work areas are: DFP 700 1,900 400 * 600 400 - 2,000 It costs $0.50 to move 1 workpiece 1 foot in the job shop. For the layout design of the job shop, Mary has the current layout (Plan A) and two proposals (Plan B and Plan C) a) LAYOUT PLAN A: Distance between work areas (departments) in feet:

Answer 1

Solution:

The yearly total material handling cost is calculated as,

Total material handling cost = Sum of (Number of workpieces moved yearly between work areas x Distance between work areas) x Cost of moving 1 workpiece 1 foot in the job shop

(a) Plan A:

Total material handling cost = [(700 x 22) + (1900 x 11) + (400 x 7) + (600 x 7) + (400 x 9) + (2,000 x 5)] x $0.50

Total material handling cost = 56,900 x $0.50

Total material handling cost = $28,450

(b) Plan B:

Total material handling cost = [(700 x 22) + (1900 x 7) + (400 x 11) + (600 x 9) + (400 x 7) + (2,000 x 5)] x $0.50

Total material handling cost = 51,300 x $0.50

Total material handling cost = $25,650 (lowest)

(c) Plan C:

Total material handling cost = [(700 x 22) + (1900 x 9) + (400 x 7) + (600 x 7) + (400 x 11) + (2,000 x 5)] x $0.50

Total material handling cost = 53,900 x $0.50

Total material handling cost = $26,950

(d) Since, Plan B has the lowest yearly total material handling cost, it is the best plan.

The best layout from the cost perspective is Plan B.