Assignment 1 MGSC368 - Assignment 1 1(15 marks A...

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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 
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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 
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