A factory consisting of four departments (A, B, C, D) is being designed. Estimates for the annual
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Question:
All material is transported in standard crates by forklift (one crate = one load = one move). The transportation costs for a load are $0.50 per metre. The distances between locations in the proposed factory are as follows:
The following constraints must also be taken into account:
- only locations 1, 2, and 4 have outside doors
- departments A and B must have outside doors
- department D must not adjoin either A or B
Find the optimal assignment of departments to locations, such that it
(1) meets the above conditions, and
(2) minimizes annual material handling costs.
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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