The real wordsTheory
The objective function
A major objective in designing process layouts is to minimise transportation cost, distance or time.
Minimise cost = SUM over i SUM over j of Xij x Cij
where n = total number of work centres or departments
i,j = individual departments
Xij = number of loads moved from department i to department j
Cij = cost to move a load between department i and department j
Two basic cost elements: the number of loads (or people) moving between centres, and the distance those loads move.