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A Missouri job shop has four departments-machining (M), dipping in a chemical ba

ID: 378371 • Letter: A

Question

A Missouri job shop has four departments-machining (M), dipping in a chemical bath (D), finishing (F), and plating (P-assigned to four work areas. The operations manager, Mary Marrs, has gathered the following data for the movement of material. The number of workpieces moved yearly between work areas are: P0 00 1,900 300 600 400 1,900 It costs $0.50 to move 1 workpiece 1 foot in the job shop. For the layout design of the job shop, Mary has the current layout (Plan A) and two proposals (Plan B and Plan C)

Explanation / Answer

The total numer of materials moved from M to D = 700 units. Distance is 20 feet. Cost per unit per feet moved = $ 0.50

So total cost of materials moved from M to D = 700 * 20 * 0.50 = $7000

GIven data is arranged in tabular form and cost of each movement is calculated as above

TOtal cost of material handling = total of all the costs for all the material movements = $24850

Source Destination Materials moved in units Distance in feet Cost per unit per feet MATERIAL HANDLING COST ( $) M D 700 20 0.5 7000 M F 1900 9 0.5 8550 M P 300 13 0.5 1950 D F 600 11 0.5 3300 D P 400 6 0.5 1200 F P 1900 3 0.5 2850 TOTAL 24850
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