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Plant layout

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Steps in CRAFT• Calculate centroid of each department and rectilineardistance between pairs of departments centroids (storedin a distance matrix).• Find the cost of the initial <strong>layout</strong> by multiplying the From-To (flow) chart, Unit cost matrix, and From-To (distance) matrix• Improve the <strong>layout</strong> by performing all-possible two orthree-way exchanges At each iteration, CRAFT selects the interchange that results inthe maximum reduction in transportation costs These interchanges are continued until no further reduction ispossible43

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