Assignment 1 MGSC368 Antoine Tardif

Assignment 1 MGSC368 Antoine Tardif - Assignment 1 1. (15...

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Unformatted text preview: Assignment 1 1. (15 marks) A manufacturing firm has four departments: A, B, C, and D. Estimates for the annual material flows between departments are: Interdepartmental Flow (number of loads/year) Dept. A B C D A- 100 150 100 B- 500 400 C- 250 D- The firm is moving to another building consisting of six large, equal-sized areas. 1 2 3 4 5 6 All material will be transported by forklift in standard-sized crates. The transportation costs for a load are estimated to be $0.25 per metre. The distances between the locations in the new building are: Distance (metres) Location 1 2 3 4 5 6 1- 100 200 50 120 250 2- 100 120 50 150 3- 220 150 50 4- 100 270 5- 100 6- Some of the layout decisions have already been made. The corner of the building where location 1 is situated lies on a major street intersection. To enhance the firms image, management has decided that location 1 should house the firms offices. Location 5 is unavailable because the boilers and other plant utilities are located there and it would be prohibitively expensive to move them. Other considerations further limit the number of possible layouts. Location 3 is the only area with loading docks and access for large trucks, so Department D, shipping and receiving, must be placed in location 3. The operations performed in Department C, the stamping department, are extremely noisy so it must not be placed next to the offices situated in location 1. a. Show all possible layouts for the factory that satisfy the preceding requirements. Option 1 Firms Office Dept. B Dept. D Dept. A Occupied Dept. C Option 2 Firms Office Dept. A Dept. D Dept. B Occupied Dept. C b. Evaluate the annual material handling cost for each of the possible layouts. Which layout is better in terms of material handing costs? Cost Matrix Option 1 Dept. A B C D A- 3 000 10 125 5 500 B-- 18 750 10 000 C--- 3 125 D---- Cost Matrix Option 2 Dept. A B C D A- 3 000 5 625 2 500 B-- 33 750 22 000 C--- 3 125 D---- Knowing the distances from one location to another, I calculated the distances between each department using the layouts I made. (Option 1 and 2) Also knowing the number of loads/year between each department I used the following formula....
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Assignment 1 MGSC368 Antoine Tardif - Assignment 1 1. (15...

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