120. D. 8,000
Total cumulative distance = SUMPRODUCT of distance between pair of locations times Flows between departments
= Distance between I and II * Flows between (X and Y + Y and X)
+ Distance between I and III * Flows between (X and Z + Z and X)
+ Distance between II and III * Flows between (Y and Z + Z and X)
= 10*(60+40)
+ 20*(90+110)
+ 10*(160+140)
= 8,000
121. C. $ 3,500
To minimize the total cost, departments having the highest flows must be located closest to each other. Depts Y and Z have the highest flows of 300 (160+140), so they must located closest to each other.
Depts X and Z have the second highest flows of 200 (=90+110), so they must also be located closest to each other.
Which means Z must be located closest to X and Y. So Z must be in the middle of X and Y. Optimal layout is:
I | II | III |
X | Z | Y |
Cumulative load x distance = 20*(60+40)+10*(90+110)+10*(160+140) = 7000 meters
Total cost = cost per meter of load moved * Cumulative load distance = 0.5*7000 = $ 3,500
122. B. 2
There are two possible layouts, X and Y can switch places.
Layout 1
I | II | III |
X | Z | Y |
Layout 2
I | II | III |
Y | Z | X |
120. Acompar y teeds to locate three depannat.(XYand Z) inde three anem cL. II, and IIIトof.tev f...
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