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120,121,122

120. Acompar y teeds to locate three depannat.(XYand Z) inde three anem cL. II, and IIIトof.tev facilay. They wa ominimie nerd
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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
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