Antoine_Tardif_mgsc368_assign1.doc

Antoine_Tardif_mgsc368_assign1.doc - Assignment 1 1. (15...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
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  firm’s image, management has decided that location 1 should house the firm’s 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
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 Firm’s Office Dept. B Dept. D Dept. A Occupied Dept. C Option 2 Firm’s 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. Cost = Distance x Loads x Unit Coasts
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/27/2012 for the course BUSINESS 101 taught by Professor All during the Spring '09 term at McGill.

Page1 / 18

Antoine_Tardif_mgsc368_assign1.doc - Assignment 1 1. (15...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online