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:
M D F P
M - 800 2.000 400
D - - 400 300
F - - - 2.000
P - - - -
It costs $1.00 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 pproposals (Plan B and Plan C).
a) LAYOUT PLAN A: Distance between work areas (departments) in feet
M D F P
M - 21 13 9
D - - 7 11
F - - - 4
P - - - -
The yearly total material handling cost of the current layout presented in Plan A = $__

Answer 1

The yearly total material handling cost for the current layout in Plan A of the Missouri job shop is $60,500.

Step-by-step explanation:

To calculate the yearly total material handling cost of the current layout presented in Plan A for a Missouri job shop with departments machining (M), dipping in a chemical bath (D), finishing (F), and plating (P), we must consider the number of workpieces moved yearly between departments and the distance between these work areas in feet. The cost of moving one workpiece one foot is $1.00.

• From M to D: 800 workpieces × 21 feet = 16,800 dollars
• From M to F: 2,000 workpieces × 13 feet = 26,000 dollars
• From M to P: 400 workpieces × 9 feet = 3,600 dollars
• From D to F: 400 workpieces × 7 feet = 2,800 dollars
• From D to P: 300 workpieces × 11 feet = 3,300 dollars
• From F to P: 2,000 workpieces × 4 feet = 8,000 dollars

Adding these figures up: 16,800 + 26,000 + 3,600 + 2,800 + 3,300 + 8,000 dollars equals 60,500 dollars. This represents the yearly total material handling cost for the current layout in Plan A.