Final answer:
To minimize transportation costs, the company should locate departments in areas that result in the shortest distances traveled. The total distance can be determined by multiplying the flow between each department and the distance between their areas. To find the flow between two specific departments, locate their intersection in the flow matrix.
Step-by-step explanation:
In order to minimize interdepartmental transportation costs, the company needs to locate departments X,Y, and Z in the areas that will result in the shortest distances traveled. Using the provided flow and distance matrices, if departments X,Y, and Z were located in areas I, II, and III respectively, the total distance loads would be moved each week can be calculated. By summing the product of the flow between each department and the distance between their respective areas, the total distance can be determined.
For the second question, to find the total flow between department Y and department Z, you need to identify the intersection of their respective cells in the flow matrix. Specifically, look at the row for department Y and the column for department Z to find the flow value.