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    Or Assign Chapter 6 Facility Location and Layout

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    Chee Onn
    This document provides information about facility location and layout optimization problems. It includes: 1) Data on 7 potential locations for a new lemonade facility including fixed and variable costs; 2) An initial layout with unit flow and cost matrices for 4 departments and the task of optimizing the layout using CRAFT; 3) Data for optimizing the layout of 7 departments using ALDEP including department areas, relationships, and parameters.

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    Or Assign Chapter 6 Facility Location and Layout

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    Chee Onn
    31 views3 pages
    This document provides information about facility location and layout optimization problems. It includes: 1) Data on 7 potential locations for a new lemonade facility including fixed and variable costs; 2) An initial layout with unit flow and cost matrices for 4 departments and the task of optimizing the layout using CRAFT; 3) Data for optimizing the layout of 7 departments using ALDEP including department areas, relationships, and parameters.

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    Or Assign Chapter 6

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    This document provides information about facility location and layout optimization problems. It includes: 1) Data on 7 potential locations for a new lemonade facility including fixed and variable costs; 2) An initial layout with unit flow and cost matrices for 4 departments and the task of optimizing the layout using CRAFT; 3) Data for optimizing the layout of 7 departments using ALDEP including department areas, relationships, and parameters.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    31 views3 pages

    Or Assign Chapter 6 Facility Location and Layout

    Uploaded by

    Chee Onn
    This document provides information about facility location and layout optimization problems. It includes: 1) Data on 7 potential locations for a new lemonade facility including fixed and variable costs; 2) An initial layout with unit flow and cost matrices for 4 departments and the task of optimizing the layout using CRAFT; 3) Data for optimizing the layout of 7 departments using ALDEP including department areas, relationships, and parameters.

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    of 3

    MECHANICAL ENGINEERING PROGRAM (HK08)

    Operations Research (KM40403)


    Assignment Chapter 6
    Facility Location and Layout
    Questions.
    Facility Location
    1. The operations manager for Mile-High Lemonande narrowed the search for a new facility
    location to seven areas. Annual fixed costs (land, property taxes, insurance, equipment, and
    buildings) and variable costs (labor, materials, transportation, and variable overhead) are
    shown below:
    Location
    Aurora
    Boulder
    Colorado Spring
    Denver
    Englewood
    Fort Collins
    Golden

    Fixed Cost per


    Year
    $1,600,000
    $2,000,000
    $1,500,000
    $3,000,000
    $1,800,000
    $1,200,000
    $1,700,000

    Variable Cost
    per Barrel
    $17.00
    $12.00
    $16.00
    $10.00
    $15.00
    $15.00
    $14.00

    a. Which location/s can be eliminated from further considerations because they are
    dominated (both variable and fixed costs are higher) by other locations?
    b. Plot the total cost curves for all locations on a single graph. Identify on the graph the
    approximate range over which each location provides the lowest cost.
    c. Using the break-even analysis, calculate the break-even quantities to determine the
    range over which each location provides the lowest cost.

    Facility Layout
    1. Consider the following initial layout with the unit cost matrix. Use the CRAFT pairwise
    interchange technique to obtain the desirable layout. What is the total cost for the
    obtained layout?.

    Initial Layout

    The Flow Matrix


    From
    To
    A
    B
    C
    D

    A
    2
    0
    1

    B
    1
    2
    4

    C
    1
    2
    3

    D
    3
    1
    2
    -

    The Cost Matrix


    From
    To
    A
    B
    C
    D

    A
    3
    1
    2

    B
    1
    3
    1

    C
    2
    1
    3

    D
    3
    2
    1
    -

    2. Solve the following initial layout problem using ALDEP algorithm. Basic Data:
    i. Number of departments in the layout = 7
    ii. Areas of Department:
    Department
    Function
    1
    Receiving
    2
    Milling
    3
    Press
    4
    Screw Machine
    5
    Assembly
    6
    Painting
    7
    Shipping
    iii. The relationship Chart:
    1
    2
    A
    3
    E
    U
    4
    I
    E
    5
    A
    I
    6
    U
    I
    7
    I
    U
    TO
    1
    2

    U
    I
    O
    U
    3

    I
    U
    O
    4

    Area (m2)
    24,000
    12,000
    12,000
    16,000
    12,000
    8,000
    12,000

    A
    I
    5

    E
    6

    iv. Minimum department preference (MDP) value = MDP = 4


    v. Sweep width = 2
    vi. Number of iteration = 2

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