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Michael Plumb's job shop has four work areas, A, B, C, and D. Distances in feet between centers of the work areas are:

A B C D
A - 4 9 7
B - - 6 8
C - - - 10
D - - - -

Work pieces moved, in 100s of work pieces per week, between pairs of work areas, are:

A B C D
A - 8 7 4
B - - 3 2
C - - - 6
D - - - -

It costs Michael $1 to move 1 work piece 1 foot. What is the weekly total material handling cost of the layout?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M979637

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