A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new facility. They want to mi
nimize interdepartmental transportation costs, which are expected to be $.50 per load meter moved. An analyst has prepared the following flow and distance matrices:Distances (meters)From/To I II IIII - 10 20II - 10III -Flows (loads per week)From/To X Y ZX - 0 80Y 30 - 150Z 100 130 -1. What are total weekly costs for an optimum layout?(A) $2,600(B) $6,200(C) $3,600(D) $8,200(E) $7,200
1 answer:
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Answer:
1. Total estimated direct labor cost = $148,800
2. Total estimated manufacturing overhead cost = $410,880
3. Total Cash disbursement for the fiscal year = $254,880
Explanation:
Please see attached detailed explanation of the above questions and answers.
