A methodology for solving the unequal area facility layout problem using distance and shape-based measures

This paper presents a methodology for solving the unequal area facility layout problem commonly encountered in industry practice. A mixed-binary nonlinear-programming model is formulated to capture the operational issues encountered on the shop floor. In particular, in addition to the distance measure that is typically used to quantify the material handling costs, the impact of geometry or the shape of the departments is quantified in the formulation of the model. A higher-level heuristic solution algorithm, based on a concept known as 'tabu search', is proposed to efficiently solve industry-relevant problems. The methodology not only considers the impact of both distance and shape-based measures simultaneously in the proposed initial solution finding mechanism, but also in the evaluation of the objective function during the entire search procedure, in the hope that it will lead to identifying a better final solution. Taking into consideration fixed and variable tabu list sizes, along with long-term memory with maximum and minimum frequencies, has led to developing six different heuristics for the solution algorithm. A single factor experiment based on randomized block design has been used to compare the performances of the six different heuristics on three different problem structures-small, medium, and large-using the total cost as the criterion. Based on this experiment, the characterizations of search procedures have been recommended to facilitate identifying the best solution for each problem structure. The proposed method is also compared with those in the published literature by solving fairly well known unequal area facility layout problems. When an improvement is observed, the comparison has led to identifying a percentage improvement in total cost of approximately 2.8% to 11.8%, thus demonstrating the effectiveness of the model and the algorithm.