12 13 14

A company of six departments has the following closeness factors and current locations of departments. Assume rectilinear distance. Which pair of departments has the greatest weighted-distance score?

 

1	2	3
4	5	6

 

Department pair	Closeness factor
1,2	10
1,3	9
1,4	8
1,5	7
1,6	5
2,3	4
2,4	3
2,5	2
2,6	1
3,4	8
3,5	7
3,6	5
4,5	4
4,6	3
5,6	2

 

		1, 2
		3, 6
		3, 4
		5, 6
		2, 4

5 points   

1.       A company of six departments has the following closeness factors and current locations of departments. There are two alternative configurations.  Assume rectilinear distance. Which configuration has the lowest weighted-distance score?

  

initial configuration         1 2 3 4 5 6    Alternative 1         5 2 3 4 1 6    Alternative 2         1 2 3 4 6 5

Department pair Closeness factor 1,2 10 1,3 9 1,4 8 1,5 7 1,6 5 2,3 4 2,4 3 2,5 2 2,6 1 3,4 8 3,5 7 3,6 5 4,5 4 4,6 3 5,6 2

		Current configuration
		Alternative 1
		Alternative 2
		Both the current and alternative 2

5 points   

A company is considering two options for the production of a part needed downstream in the manufacturing process. Particulars are as follows:

Specialized automation	Fixed Costs = $10,000 / month	Variable Cost / Unit = $2
General automation:	Fixed Costs = $4,000 / month	Variable Cost / Unit = $6

What is the monthly break-even quantity for choosing between the two automation approaches?

		1000
		1500
		2000
		2300
		2500