An operations manager wants to determine the optimum (the least costly) arrangem

Question

An operations manager wants to determine the optimum (the least costly) arrangement of four work centers (A, B, C, and D) in four areas (I, II, III, and IV) on an existing shop floor. The handling/transportation cost is 50 +n cents per load per yard. The work flow matrix, distance matrix, and current process layout for this operation are as follow: Work Flow Matrix (Loads per Day) Distance Matrix (Yards) FromTo I FromTo A A - B 2 | C 120 +n B 5 - 2 C 12 0 - D | 20 15 1 10 Z II III IV 7 | 12 | 23 - 10 20 10 The reverse distances are the same. Current Process Layout " B | " C Y » Example: Handling/Transportation Cost 50¢ + ng = $0.50 + $0.45 = $0.95 per load per yard Work Flow from C to A = 20 +n= 20 + 45 = 65 loads

Explanation / Answer

A. Total workflow between A and C = workflow from A to C + Workflow from C to A = 12 + (20+48) = 80

B. Handling/transportation cost per load per yard = 50+48 cents = $ 0.98

Total handling/transportation cost per day for the current process layout = 0.98*Wij*Dij

Where, Wij is the Workflow between workcenters and Dij is the Distance between workcenters

Total handling/transportation cost per day for the current process layout = 0.98*(7*(5+2)+12*(12+68)+23*(20+8)+10*(0+2)+20*(15+5)+10*(10+7)) = $ 2198.14

C. Optimum layout is determined by rearranging the workcenters such that workcenters having the highest workflow between are located the nearest to each other. The highest workflow is between A and C. Followed by A and D. Therefore, A is located nearest to both C and D. The optimum layout is

Distance matrix for this layout is

Total handling/transportation cost per day for the optimum process layout = 0.98*(20*(5+2)+7*(12+68)+10*(20+8)+23*(0+2)+10*(15+5)+12*(10+7)) = $ 1401.4

C A D B

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