Unit load and material-handling considerations in facility layout design

The effectiveness of a layout design cannot be completely measured if the operational characteristics of the manufacturing system are ignored. There is, therefore, a need to develop integrated manufacturing system design models. In this paper, the integration of unit load and material-handling considerations in a facility layout design is presented. This integration is based on a stochastic model that captures the operational characteristics of the manufacturing system and a nonlinear mixed-integer program that incorporates a department formation and facility layout. The non-linear mixed-integer program is solved using a simulated annealing-based algorithm. Analytical results for different manufacturing system scenarios are presented and compared with results obtained using alternative QAP-type formulations. Based on our experiments and the characteristics of the different formulations, key observations are presented and discussed.