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Placement of Departments in Operations Management

Determine the placement of departments for a newly designed facility that will minimize total transportation costs using the data in the attached tables. Assume that the reverse distances are the same. The locations are shown in the attached grid. Use a total cost of $1.00.

Suppose the company has revised its plans for the processes described above to accommodate technological process changes. Determine the placement of departments that will now minimize total travel cost. Use the distances attached for the first part, but use the part b matrix of daily trips between departments.


Solution Summary

This solution determines the appropriate placements for the facility while taking transporation costs into consideration, as well as the revision of the new facility's planning.