Matthew W Ford
Location & Layout Practice Problems (Updated 02/24/2007 06:43 PM)
1. The data in Table 1 provide the operating costs of 3 possible locations for a new electronic component assembly plant. Which location would minimize total costs given annual production of 50,000 units?
Table 1: Assembly Plant Site Location Info
This is like our Sams Club example. For 50,000 units:
2. Given the location information and volume of material movements from a distribution center to several retail outlets (Table 2), find the best location using the center-of-gravity method.
Table 2: Location and Demand Data for Retail Sites
Best location in a direction is TVZ / TV
Note that in this case, there is no difference in transportation costs, so assume T=1 for all.
Remember, secret is to evaluate one direction at a time.
In x direction:
Similarly, in y direction=13.5
3. Refer to Table 3 and Figures 1 and 2. Given the layout of departments, the frequency of movements among them, and the distance between them, determine if less materials handling is achieved by switching departments D and F. Assume diagonal distances to be two unitis and horizontal/vertical distances between adjacent departments to be one unit.
Table 3: Frequency of Movements Among Departments
Figure 1: Current Layout
Figure 2: Proposed Layout
Key upfront question: Is this a job or flow layout that were dealing with??
The current layout:
Use CVD method, and assume costs are the same throughout (C=1)
From A to other departments in current layout, CVD=10 trips*1 unit/trip + 0 + 2*5 + 5*2 + 10*3 = 60
Similar calculations for other departments yield:
Using same method and distance relationships of proposed layout:
Since more distance is required in the proposed layout, keep current layout.
NOTE: These problems are adapted from Evans, J.R. (1997). Production/Operations Management, 5th ed. Minneapolis/St. Paul: West.
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