Suppose we want to arrange the 4 departments within a production facility to minimize the total interdepartmental material handling cost.

All departments have the same space requirement, 20 feet by 20 feet. The production facility is 40 feet by 40 feet. Materials are transported in a standard-size crate. The transportation cost is $1 per crate between adjacent departments. Only horizontal and vertical moves are allowed in this case. Therefore, for a layout as following, it would cost $2 per crate to transport from Department 1 to Department 4.

The table below summarizes the interdepartmental flows we need to manage. For example, a total of 50 crates need to be transported between Department 1 and Department 2. And a total of 75 crates need to be transported between Department 1 and Department 3.

Now consider the following process layout:

For each pair of departments listed in the table that summarizes the material flows, how much does it cost to transport the required amount of material?

Transcribed Image Text:

Department Department Department Department 3. 2. Department Department Department Department 3. 2. Department Department Department Department 3. 2. Department Department Department Department 3. 2. Department Department Department Department 3. 2. Department Department Department Department 3. 2.

Answer rating: 100% (QA)

Pair of Department RateCrate Crates Tota... View the full answer