FP Guide

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FACIITIES PLANNING
This material is intended to serve as a reading guide for the textbook. The order in which the
chapters of the textbook are covered has been changed.
The guide is divided into the following 14 topics:
- Topic 1: Fundamental concepts of manufacturing and facilities planning (Chapters 1, 4, 10)
- Topic 2: Strategic planning (Chapter 2)
- Topic 3: Product, process, and schedule design (Chapters 3 and 7)
- Topic 4: Activity relationships and space requirements (Chapter 4)
- Topic 5: Process for developing layout alternatives (Chapter 7)
- Topic 6: Overview of computer-aided layout procedures (Chapter 8)
- Topic 7: Material handling and conveyor models (Chapters 6 and 12)
- Topic 8: Personnel requirements (reading assignment, Chapter 5)
- Topic 9: Office layout planning
- Topic 10: Location models in facilities planning (Chapter 12)
- Topic 11: Warehouse operations (Chapters 6 and 9)
- Topic 12: Warehouse planning models (Chapter 12)
- Topic 13: Plant location models
- Topic 14: Special topics (optional)
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1. FUNDAMENTAL CONCEPTS OF MANUFACTURING AND FACILITIES PLANNING
Definitions
Any facility can be viewed as having a location and consisting of several components. By location
it is meant the placement of a facility in such a way that it will satisfy specified requirements concerning
customers, suppliers, and other facilities with which it interacts. The components are the structure (building
and services), layout (equipment, machinery, furnishings), and handling system (mechanism for required
interactions in the layout).
Facilities planning includes facilities location and facilities design. Facilities location refers to
determining how the location of an activity supports the accomplishment of the intended objective of the
activity. The study of the way the components of an activity support the accomplishment of its objective or
objectives is within the realm of facilities design. This area includes: structural design, layout design, and
handling system design. In particular, facility layout is the field of selecting the most effective arrangement
of physical facilities that allows the greatest efficiency in the allocation of resources needed to manufacture
a product or perform a service. As stated by Muther (Practical Plant Layout, 1955), "Plant Layout
embraces the physical arrangement of industrial facilities. This arrangement (installed or planned)
includes the space needed for material movement, storage, indirect laborers, and all other supporting
activities or services, as well as for operating equipment and personnel."
Facilities layout principles and techniques can be used in manufacturing plants, hospitals, airports,
shopping centers, etc.
Significance of Facilities Planning
Since 1955 approximately 8% of GNP has been spent annually on new facilities in the U. S.
Industry Percentage GNP
Manufacturing 3.2
Mining 0.2
Railroad 0.2
Air and other transportation 0.3
Public utilities 1.6
Communications 1.0
Commercial and other 1.5
All industry (total) 8.0
Objectives
Meaningful objectives for facilities planning are difficult to set forth. Such objectives may be
divided into two types: objectives of facilities location and objectives of facilities design. Briefly, the
objective of facilities location is to determine the placement of all facilities needed to produce a product or
service in such a way that all the components of the deliver-to-customers cost which depend on location
aspects are minimized or significantly reduced. Additionally, the objectives of facilities design include: (1)
improve material handling, material control, and housekeeping to enhance and facilitate the manufacturing
process; (2) effectively utilize people, equipment, space, and energy; (3) minimize capital investment; (4)
promote flexibility and ease of maintenance; (5) employee safety and job satisfaction.
Scientific Method Steps
- Problem definition: what we want to solve and what we are assuming
- System identification: group of elements working together to perform a common function
- Model formulation: iconic, analog, analytical (mathematical), simulation
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- Solution procedure: how to get a solution from model
- Validation: how the solution agrees with real situation
- Implementation: how the solution is kept current (assumptions, data, constraints)
Types of Mathematical Models in Facility Planning
We will focus on four types of models: location, warehouse layout, conveyor and storage models.
Each model has an objective function and a set of constraints expressed in terms of decision variables
(unknown) and parameters (known). The objective function indicates the measure of effectiveness used to
select a solution. The constraints indicate the conditions that the solution needs to satisfy.
Facilities Planning Process
The steps of the scientific method can be reformulated as follows when we consider specifically
the engineering design process: (1) define the problem; (2) analyze the problem; (3) generate alternative
designs; (4) evaluate the alternatives; (5) select the preferred design; and (6) implement the design. These
steps can again be re-stated for the facilities planning process (pages 9 and 10).
The facility planning process includes these activities: (1) define the objective of the facility; (2)
specify primary and support activities to be performed; (3) determine the interaction between activities; (4)
determine space requirements for all activities; (5) generate alternative facilities plans; (6) evaluate
alternatives; (7) select a plan; (8) implement the plan; (9) maintain and adapt the plan; (10) redefine the
objective. This takes place according to a life cycle consisting of three phases: (1) objectives; (2) plan; (3)
implementation.
Manufacturing Concepts
The purpose of manufacturing, from an ideal point of view, is to make life in society better
(remember the GE commercial: "We bring good things to life.") through the production of functionally
desirable, aesthetically pleasing, environmentally safe, economically affordable, highly reliable, top-quality
products. A manufacturing system can be divided into the following functions:
- Product design
- Process planning
- Production operations
- Material flow/facilities layout
- Production planning and control
Product design is responsible for taking input from marketing and for building a product. Process
planning includes specification of operational sequences needed to transform raw material into finished
product. Manufacturing operations are generally classified as forming (shapes are changed), treating
(characteristics are changed) and assembling (material is added). Material handling is related to systems for
moving parts, tools, and scrap. Facility layout is concerned with the physical location of the production
processes within each facility. Production, planning & control is responsible for integrating marketing
information, production capacity, and current inventory levels to determine production levels that will allow
a firm to run smoothly and efficiently.
Types of Basic Layouts
Typical layouts are given below. Most layouts can be classified as product or process layouts, or a
combination of them.
- Fixed-position: material or major component remains in a fixed location
- Product: low number of part types and high production volume
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- Cellular (group technology): medium number of part types and medium production volume
- Process (job-shop): high number of part types and low production volume
There are three things that can happen to the material in making a product: it can be formed,
treated, or assembled. The classic types of layouts are the layout by fixed position, the layout by process,
and the line production. During the last two decades, a fourth layout has become an important one: the
cellular layout (also known as the group technology layout).
The fixed-position layout is a layout where the material or major component remains in a fixed
place to which tools, machinery, men and other pieces of material are brought. The product layout (or
production line) places one operation immediately adjacent to the next; the equipment needed is arranged
according to the operational sequence. In the process layout all operations of same process or type are
grouped together; equipment performing a common function is grouped together. The cellular layout is
based on the grouping of parts to form families based on common machining requirements (and other
aspects, such as shapes, material composition, tooling requirements, etc.). This layout has a high part flow
within cells and low flow between cells.
From the point of view of product types and production volumes, the following generalizations are
valid: (a) the production line layout is especially suitable for cases where the number of part types is low
and the production volume for each type is high; (b) the process layout is especially suitable for cases where
the number of part types is high and the production volume for each type is low; (c) the cellular layout is
especially suitable for cases where the number of part types is neither low nor high and the production
volumes are in the middle (between low and high). See Figure 4.1.
Break-Even Point Analysis
A graphical break-even point comparison between the process and product layouts is shown below.
In this graph we consider production volumes, costs (fixed and variable), and revenues. We show the total-
cost lines for both layouts, the revenue line, and the break-even points for the layouts. As can be seen from
this graph, the product layout is preferred for high production volumes and the process layout is preferred
for low production volumes. If F is the fixed cost, v the variable cost per unit, and r the selling price per
unit, the production level Q corresponding to the break-even point can be determined from the relationship
F + vQ = rQ.
Total Cost $
Production Volume
Revenue
Product Layout
Process Layout
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Manufacturing Operations (Reading Assignment, Ch.10, book)
- Traditional manufacturing (TM) versus contemporary manufacturing (CM)
- Methods for CM implementation
- Facilities planning trends
Manufacturing Processes
As already indicated, manufacturing operations can be classified as shaping, treating and
assembling operations. The shaping and treating operations can be further sub-classified as follows:
- Processes to change the shape of material
- Processes for machining parts to a fixed dimension
- Processes for obtaining a surface finish
- Processes for changing physical properties
- Plastic processing
A brief description of specific processes corresponding to the above classification is given in Appendix A.
Exercises
1. Provide examples of each type of layout. As an illustration, see Figure 4.9, book, page 82.
2. Perform a break-even point comparison between the process and product layouts. Assume suitable
numerical values for costs (equipment and operation) and revenues. Find the production volume at which
both layouts are economically equivalent. Find the break-even point for each layout.
3. Consider the process and product (production line) layouts. Choose between $2,700,000 and $900,000
the more appropriate value for the fixed cost of the process layout, and consider the other value as the cost
of the product layout. Similarly, choose variables costs between $120 and $360 for the layouts. Finally,
assume a selling price per unit equal to $480. (a) Compare the two layouts on the basis of a sketch showing
the variation of costs versus production levels. (b) Find the level of production at which the two layouts are
identical from a cost point of view. (c) For each layout find the level of production at which the production
of the item starts being profitable. (d) What typical conclusion can you draw concerning the production
levels to choose one of the layouts over the other one?
4. Indicate which layouts are more appropriate for different combinations of the number of part types to be
manufactured and the production volumes.
5. Reading assignment: Chapter 10, textbook.
6. Reading assignment: Chapter 3 [Sule 94], pages 51-75.
As an illustration, let $1,800,000 and $1,200,000 be the fixed cost for the production and process
layouts, respectively. Similarly, let $220 and $300 be the variable costs for the two layouts, respectively.
Assume that the selling price per unit equal to $380. (a) Find the level of production at which the two
layouts are identical from a cost point of view. (b) For each layout find the level of production at which the
production of the item starts being profitable. Using the relationship F + vQ = rQ, we get the following
results:
(a) (F + vQ)
product
= (F + vQ)
process
; Q = 600,000/80 = 7,500.
(b) Q
product
= 1,800,000/(380-220) = 11,250; Q
process
= 1,200,000/((380-300) = 15,000.
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2. STRATEGIC FACILITIES PLANNING
Clear Objectives and Proper Input Data
A strategy can be viewed as a course of action to reach a particular goal. In order to do this a firm
has resources such as people, materials, equipment, and capital. Once a measure of effectiveness is
selected, the best strategy or a highly desirable strategy can be recommended. Strategies translate
objectives into action as major objectives become specific goals, and these become specific strategies to be
implemented. To provide some insight into what is important in strategic facilities planning, we might
consider the results from a survey conducted by Muther and Phillips [IE March 83]. A summary of the
survey and results follow.
Question 1: In the process of planning (i.e., the analysis and synthesis you go through to develop facility
plans), what aspect or consideration do you feel is the most important to achieving successful results?
Answer: Facility planners cite clear objectives and proper input data as main success factors. According
to the survey by Muther and Phillips, the most important factors can be listed (in order of importance) as:
objectives (what is needed from the facility); availability and validity of data; participation by others in the
planning process; understanding and knowledge of operations; methods of planning; management of the
planning; matching; others.
Question 2: In the existing facilities at your plant as it is today (or the plant you are most familiar with),
what are the chief philosophies, principles or objectives that seem to be built into these existing facilities?
Answer: Economics (effective short and long term return on investment, minimum operating costs,
reduced costs of construction and services); the process (rational and effective, flow of material and work,
balance of operating equipment); and adaptability (flexibility and ease of expansion/rearrangement,
adaptability to changes, diversified open areas, general-purpose building). Interestingly, people-oriented
issues as comfort, convenience, safety, facility appearance did not score highly.
Question 3: What are the guiding principles or prime objectives underlying the development of plant
facilities that you consider of major importance?
Answer: Economy (return on investment, cost optimization, profitability, maximum space utilization,
minimum labor cost, efficiencies); matching facilities to business (balanced capacity, utilization of existing
facilities); flexibility (meeting changing needs, allowing for future modifications, ease of expansion); flow
of materials; future; personnel; others.
Strategic Planning
Strategic planning can be defined as a total-system approach to integrate resources to generate
strategies that would result in the development and implementation of an effective and efficient facilities
plan (location and design). Within the manufacturing and distribution strategies, the storage, handling and
control of material must be addressed. The following elements are representative of those to be considered:
1. Storage and retrieval of materials, including all the functions of warehousing
2. Material handling and site, including to, from, and within manufacturing
3. Physical distribution, including movement to, from, and between sites
4. Control of equipment and material (physical and logical)
5. Layouts for sites and buildings modules
6. Facilities requirements
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Developing the Plan
There are several typical internal functions affecting facilities planning:
1. Marketing
2. Product design
3. Process planning (manufacturing planning)
4. Schedule design (when and how much to produce)
5. Finance and administration
An integrated plan is needed in order to formulate functional strategies that will be consistent with
and supported by the internal functions. These functional strategies are specific courses of action to reach
the objectives of facilities planning as well as those of the organization. Strategies are needed for such
functions as marketing, manufacturing, distribution, purchasing, inventory & production control, facilities,
material handling, and data processing/information.
Marketing
Manufacturing
Inventory Control
Production Control
Distribution
Purchasing
Facilities
Material Handling
Data Processing
Functional Strategies
Internal Functions
Marketing
Product Design
Process Planning
Schedule Design
Finance & Mgmt.
STRATEGIC
FACILITIES
PLANNING
Functional
Strategies
Internal Functions
Additional Functions
- Receiving Inspection
- Storage Retrieving
- Dispatching to production and assembly
- Production and assembly
- Movement
- Work-in-process storage
- Materials control
- Packaging
- Dispatching to and from storage
- Order picking
- Dispatching to shipping
- Order accumulation
- Shipping
- Maintenance
- Personnel service
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Inputs
- Inventory control
- Production control
- Quality control
- Purchasing
- Marketing
- Product design
- Packaging
- Product development
- Manufacturing
- Information systems
- Management
Exercises
1. Read the article summarized in this topic [IE March 83], pages 44-47. What are the most important
principles or philosofies built into existing facilities and the planning of new facilities?
2. Discuss the examples of inadequate planning briefly presented in Section 2.3.
3. What is strategic planning? What are the internal functions and functional strategies that must be
properly integrated in successful strategic planning?
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3. PRODUCT, PROCESS, AND SCHEDULE DESIGN
As we have already indicated, the steps of the facilities planning process are: (1) define the
objective of the facility; (2) specify primary and support activities to be performed; (3) determine the
interaction between activities; (4) determine space requirements for all activities; (5) generate alternative
facilities plans; (6) evaluate alternatives; (7) select a plan; (8) implement the facilities plan; (9) maintain and
adapt the facilities plan; (10) redefine the objective of the facility. The relationship between product,
process and schedule design and facility planning is shown in Figure 3.1.
Product Design
A product that merely meets the fundamental requirements may not be designed from a production
standpoint. For effective production, it should be designed so that it is easy to make. The "equation"
Product Design and Specifications + Production Quantity = Machinery emphasizes the importance of this
topic.
Once the market analysis is performed and it has been determined that the product has a sufficient
probable market, the next step is to develop a detailed design suitable for manufacturing. Development of
the design follows the same steps as any engineering undertaking: (1) Identify the product and develop
preliminary ideas. (2) Redefine the ideas. (3) Analyze, select and test the design. (4) Implement the
design. Each step can be further subdivided. For example, step 2 may include items such as modifying
shapes, forms, weights, volumes, physical properties (strength, elasticity, impact resistance, etc.), scale
drawings. Step 4 can include developments of working drawings and specifications; models and details;
testing and modification of a prototype.
Detailed operational specifications, pictorial representations, and prototypes of the product are
important inputs for the facility planning process. Usually the following documents are required:
- Exploded assembly drawing (Figure 3.2)
- Exploded parts photograph (Figure 3.3)
- Component part drawings (Figures 3.4 and 3.5)
- Part list: part numbers, part name, number of parts per product, drawing references (Fig. 3.7)
- Bill of materials (a structured parts list, see Figures 3.8 and 3.9)
An exploded view is a diagram of a construction that shows its parts separately but in positions that
indicate their proper relationships to the whole. Product design engineering may in itself operate as a
primary factor in major losses by including tolerances that result in assembly misfits or special production
processes that are unnecessary. Product design has the greatest impact on product quality. It is essential to
consider all aspects of the design, including factors built into the product, that affect the deviation of
functional characteristics of the product from target (nominal) values. It is also necessary to consider
methods to reduce the undesirable and uncontrollable factors that cause functional deviations.
Process Design
Production methods are the most fundamental factor affecting the physical layout, for they
ultimately determine the machinery and equipment to be arranged. The term "design for manufacture" is
synonymous with design for production, design for economic manufacture, design for assembly, design for
automated manufacture, etc. Traditionally, design efforts account for only 5% of the total product cost but
influence 70% of the manufacturing cost [Sule, 1994]. The following steps must be considered in process
design: (a) process identification; (b) process selection; (c) process sequencing.
A. Process Identification
The fundamental information for process identification was actually generated at the product design phase:
1. Make/buy (Figure 3.6): this decision impacts the manufacturing processes needed.
2. Part list: part numbers, part name, number of parts per product, drawing references (Figure 3.7)
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3. Bill of materials (a structured parts list, see Figures 3.8 and 3.9)
B. Process Selection
1. Define elementary operations
2. Identify alternative process for each operation
3. Analyze alternative processes
4. Standardize processes
5. Evaluate alternative processes
6. Select processes
As a result of the above procedure, we obtain processes, equipment, and raw material required for
in-house production. This output is organized as a route sheet (see Table 3.1 and Figure 3.11). The content
of a route sheet consists of: a heading with at least the component name and identification number;
operational sequences with descriptions and identification numbers; equipment requirements (type of
machine, tools); unit times (set-up and operation times); raw material requirements with a description and
quantities. When the departmental organization of the layout is completed, the route sheet can indicate the
department where each operation takes place.
C. Process Sequencing
This is provided by the assembly chart. See Figure 3.12 for an example. Route sheets provide
information on production methods and assembly charts indicate how components are put together. The
combination of the route sheets and the assembly chart results in the operation process chart. See an
example in Figure 3.13. An alternative graph used for the same purpose is the precedence diagram. An
example is shown in Figure 3.14.
Schedule Design
- Production quantity (lot size)
- Production scheduling (when to produce)
- How long to produce
Process design specifies types of equipment needed. Schedule design determines the number of
each equipment type required to meet a production schedule. The input data come from marketing
information (volume, trend, demand distribution by geographic location, type of consumer, etc.). Schedule
design determines the process requirements (number of each type of equipment needed to meet the
production schedule).
Process Requirements
To determine the process requirements associated with the schedule design, we consider three
phases: (1) determination of the quantity to be manufactured for each component (including scrap
estimates); (2) identification of equipment required by each operation; (3) consolidation of all equipment
requirements.
The expected number of units to start into production for a part having a specified number of
operations can be obtained from Equations (3.1) through (3.3). Example 3.1 illustrates the use of this
calculation. The fundamental result is given below:
I
P P P
n
n
1
1 2 1 1 1
=

O
( )( )...( )
Where I1 is the production input, On is the market estimate for a part that requires n sequential
operations, and Pi is the percent defective on the i
th
operation.
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The required equipment fraction can be obtained from Equation (3.4). This equation can be
rewritten as (using the notation in Reed's Plant Layout: Factors, Principles and Techniques, 1961):
N =
TP
HC 60
where the following notation is used: N= number of machines required, T= time required per operation (in
minutes), P= required production per day (including good and bad parts), H= number of hours of
production per day (indicated in the heading of the layout planning chart to be studied in the next section),
and C= use factor of equipment (normally 0.85). Appendix B shows standard times for selected processes.
Selected equipment information for these processes, including cost estimates, are shown in Appendix C.
An illustrative calculation is given in Example 3.2. Example 3.3 illustrates the computation of the
total equipment requirements. Once the P&P&S design phases are completed, the development of the
layout planning chart can be started.
Example
One product requires two sequential operations performed by a machine. The first operation takes 3.5
minutes and the defect percentage is 12%. The second operation takes 6.0 minutes and the defect
percentage is 7%. Assuming that the plant operates on the basis of 250 workdays per year and a daily shift
of 10 hours, it is desired to determine the minimum fractional number of machines to manufacture 50,000
units per year. In another similar plant belonging to the same company, past annual data on identical
operations and working conditions indicate that 10 machines were out of production a total number of 2,198
hours due to set-up and 2052 hours due to machine unavailability (for instance, maintenance needs).
Solution
N =
p s H
T P T P
) ( 60
2 2 1 1
+
s =2198/(250*10) = 0.88, p = 2052/(250*10) = 0.082, H = 10, N = 35.9/[(10-s)p] = 4.32
Seven Management and Planning Tools (Reading Assignment, textbook, pp. 56-65)
- Affinity diagram: to develop ideas and document issues
- Interrelationship diagram: to prioritize planning efforts
- Tree diagram: to develop solution alternatives
- Matrix diagram: to organize information into sets of items
- Contingency diagram: to identify events and contingencies during implementation
- Activity network diagram: to develop a work schedule
- Prioritization matrix: to judge relative importance of design criteria
Layout Planning Chart
The layout planning chart combines the detail of the process with the anticipated restrictions of
work periods and production quantity requirements to provide data upon which to base machine and power
A B
T
2
=3.5 min
12%
T
1
=6.0 min
7%
P
1
=61,096 50,000
P
2
=53,764.4
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requirements, as well as the necessary material handling and storage facilities and methods. This
combination is accomplished by extending the route sheets to develop a flow-process chart with additional
provision for extension of analysis to determine quantitative means for satisfying total route-sheet
requirements within operating time policy limits. A layout planning chart form, which accomplishes these
objectives, is shown in Figure 7.2, book, page 294. The chart summarizes the following information:
- Flow Process
- Standard time for each operation (fabrication)
- Machine type and quantity (fraction)
- Manpower requirement
- Material handling requirements
A short description of the layout planning chart shown in Figure 7.2 follows.
Chart Headings
There is a layout planning chart for each route sheet. The part number, part name, assembly name,
material and material size can be obtained from the route sheets. The pieces per assembly and assemblies
per product are indicated in the assembly chart. The production hours per day are dependent upon the
number of shifts per day, hours per shift, efficiency relationships. It is generally better to determine
production hours per day in standard hours.
Flow Process
This is an extension of route sheets already developed. Here we use the same activities considered
in work simplification: operation, move, storage, delay and inspection. Delays are not differentiated from
storage in planning sheet development. Each operation of the route sheet must be described by the four
elements F = fabrication, M = move, S = storage, and I = inspection, in sequence starting with step 1 and
progressing to step n. A verbal description is required for definition and clarification.
Operation No.
This normally applies to fabrication and as such it should have the same operation number
indicated in the route sheet.
Department No.
The assignment of elements or operations to departments should be delayed until after decisions
are made on departments in final layout.
Time Factors
Use standard time per piece or standard time per lot, as appropriate. Lot size should be included in
chart heading. Time for inspections may be available if 100% inspection is desired, or if the probable
percent of inspection is known. Time for handling operations cannot be determined yet. Time-in-storage,
although not an operational time from equipment or labor standpoints, does determine the space, storage
facilities, and storage methods. The frequency and method of clearing storage will largely determine layout
requirements. Both frequency and method depend on material handling equipment.
Machine Requirements
Using the notation in Reed's Plant Layout: Factors, Principles and Techniques, 1961, the fractional
number of machines for a given operation is calculated by the formula
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N =
TP
HC 60
where the following notation is used: N= number of machines required, T= standard time required per
operation from the time per piece or lot column (in minutes), P= required production per day (including
good and bad parts) determined from marketing studies, H= number of hours of production per day
(indicated in the heading) after subtracting setup time if needed, and C= use factor of equipment (normally
0.85). Note that N can be expressed also as
N =
P HC
T
/ ( )
/
60
1
that is, N is equal to the machine requirements per minute divided by the machine capacity per minute.
The formula N = TP/(60HC) is the same formula given in Equation 3.4 of the textbook, page 54
(setting E = 1). As an illustration of our formula, let us assume the following situation: (a) available time =
8 hours; (b) set up time = 0.20 hours; (c) 1600 pieces per day rate; (d) standard time = 0.015 hours per
piece; machines "up" 90% of the time. Thus,
N =
( . )( )( )
( )(8 . )( . )
0 015 60 1600
60 0 2 0 90
= 3.42
As an exercise, the student can compute this value using the formula given in the textbook, setting E = 1.
Manpower Requirements
Same formula as above. N in this case is the number of crews required. The number of operators
per machine needs to be known to determine the final number of operators. The formula in this case can be
rewritten as
N
c
=
TP
HCc 60
where N
c
represents the number of crews. Here C
c
is the fractional ratio of the operator's time during
which he can reasonably expect to be assigned to the equipment or operation involved. If time is expressed
in terms of standard time, allowance has already been made for personal time and a portion of the
unavoidable delay. We generally assume that C
c
= C.
Material Handling
This section cannot be completed until after evaluating the alternatives and selecting the final
equipment. For storage location analysis, as well as handling, definition of container is necessary. Lot size
to be moved must be known. Storage must be provided for a minimum of one load at the completion of an
operation and one load being worked on, plus one load in reserve at the star of each operation. Handling
distance can be determined only after a preliminary layout has been developed and the path of movement on
the layout has been determined.
Balancing Considerations
The desired number of machines will be between two limits. The lower limit comes from adding
all fractional machines (of the same type) and raising the sum to the next integer. The upper limit comes
from raising the fraction to an integer number for each individual operation and then adding all integers. In
manufacturing areas the majority of industrial plants will tend toward a process arrangement, scheduling
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production of parts by lots through the various departments. Assembly or process industries or areas, on the
other hand, normally are primarily product arrangements.
We can assign to each machine a combination of operations collectively requiring no more than
100% of available machine time under normal conditions. This can be accomplished by combination of
operations having fractional machine requirements until total requirements approach unity. When operation
requirements indicate a mixed number of machines, the fractional part can then be handled in the same
manner as a fractional requirement and the integer portion assumed to represent machines fully utilized at
unity requirement.
As an illustration (Reeds, 1961), consider the following table with requirements for a No. 4-A
turret lathe. Note that requirements No. 1 and No. 2 are combined together, as are No. 3 and No. 5.
Similarly, No. 4 is combined with No. 6. The total number of No. 4-A turret lathes is equal to 16, which is
the minimum we can get by.
Requirement No. Operation No. Fraction Combined with Total
1 343718-10 2.78 247674-70 3
2 247674-70 4.13 343718-10 4
3 671894-40 3.61 791867-30 4
4 534671-90 1.21 672345-30 2
5 791867-30 3.37 671894-40 3
6 672345-30 0.64 534671-90 -
Concerning manpower balance, after eliminating simultaneous operations the following steps may
be followed. (1) Combine jobs that require the same crew size where possible. This is identical to the
problem of balancing machines. (2) If combination with equal crew size is not possible, assume the next
higher integer number crew requirement and locate operations in the chart requiring smaller crews, or
individual operator jobs, each of which has additional fractional requirements approaching that available
from the crew being considered. Select smaller crews and individuals with approximately equal fractional
requirement such that the sum of individuals plus the sum of smaller crew sizes is equal to the size of the
crew being combined. Excess manpower of the larger crew should be distributed among the individual jobs
and smaller crews to obtain balance.
Concerning assembly balancing, the requirement for design is usually that each operation must be
assigned to a workstation alone or in combination with operations immediately preceding or succeeding to
result as near as possible in all workstations having equal load assignments.
Exercises
1. A plant manufactures three parts A, B and C, to be assembled into a product. Turret lathes are required
for one operation on each of the three. For planning purposes it is assumed that plant personnel works at 70
per cent of normal and lathes have a utilization probability of 0.90. Policies establish that no run will be for
less than the monthly production requirement. The plant works an 8-hour, 5-day week and set-up is carried
out during the regular work shift. The required production is 10,000 per month (4.2 weeks/month). It is
desired to determine: (a) the number of lathes; (b) the number of turret lathe operators; (c) the number of
turret lathe set up workers. The following data are given (including set-up time per machine):
Product Operation Time (h) Defective % Set-up time(h/month)
A A-747 0.083 3.4 10
B B-214 0.031 2.6 14
C C-103 0.117 1.5 12
2. Textbook, Problem 3.11, pages 67 and 68. Compare this situation to the one given in Exercise 6 below.
15
3. In which charts and/or drawings do you document the information for product design and process design?
Summarize the content of each chart or drawing.
4. Consider the following list of factors:
A. Parts (names and codes)
B. Quantity for each part
C. Make/buy
D. Assembly level for each part
E. Part materials
F. Machine type and fraction
G. Sequence of operations (flow)
H. Crew size (manpower)
I. Inspections
J. Assemblies and sub-assemblies
K. Material handling requirements
L. Operation number and description
M. Standard times
N. Planning departments.
It is desired to identify those in each of the following documents: (a) The parts list, (b) The bill of materials,
(c) The route sheet, (d) The assembly chart, (e) The process chart, and (f) The layout planning chart.
Indicate your answer in the following table, where an X mark indicates that a factor is included in a
document:
5. Describe the typical content of a layout planning chart. Explain the relevant balancing considerations
necessary to develop the chart.
6. Find the machine fractions for the following case. Part X is routed from machine A to machine B and
then back to machine A, and has an annual production volume of 150,000 units. Part Y is routed from
machine B to machine A and its annual production volume is 120,000. Assume the following data:
Machine A Machine B
Standard time (hr) for part X
First operation 0.10 0.01
Second operation 0.07
Standard time (hr) for part Y 0.06 0.06
Scrap estimate (%) for part X 6.00 3.00
Scrap estimate (hr) for part Y 6.00 3.00
A B C D E F G H I J K L M N
Part list
Bill of
materials
Route
sheet
Assembly
chart
Process
chart
Layout
planning
chart
16
Historical efficiency (%) 95.00 90.00
Reliability factor (%) 94.00 97.00
Hours available per year 2000.00 2000.00
7. Two machining operations A (3 minutes per part) and B (10 minutes per part) are performed sequentially
to manufacture a part. Machines A and B produce 5% and 6% defective items, respectively. The factory
operates 8 hours each day, 5 days per week, 4.2 weeks per month. Every day each machine needs 0.30
hours for being set up. Find the machine fraction for each type (A and B) if we need to handle a demand of
1,000 items per month? Use a machine-up factor equal to 85% for each machine.
8. Consider the following sequence of operations with the given scrap percentages.
Determine the number of parts to be manufactured at the beginning of the sequence, assuming that the sub-
sequence B-C-D-E-B is performed once. Now consider the case where this sub-sequence is repeated twice.
A B
A
P
A
=2%
B
P
B
=3%
C
P
C
=10%
%
D
P
D
=4%
E
P
E
=5%
F
P
F
=1%
10,000
17
4. ACTIVITY RELATIONSHIPS AND SPACE REQUIREMENTS
Once we have established the types of equipment needed and decided how much of each
equipment is necessary, the next step is to group the equipment into departments. The goal is to group the
departments rationally. Typically, departments can be combined from similar products (line production),
similar processes (job shop), or, most likely, some line departments and some process departments,
although there are other strategies. A good clue for how to organize activities into departments is to take a
look at the "organization chart" (which shows reporting relationships and responsibility levels).
Departmental Planning
Planning departments are groups of workstations put together in a plant layout. A workstation
consists of fixed assets needed to perform specific operations. It can be considered as a facility itself. It
includes space for equipment, materials, and personnel. Figure 4.26 shows a sketch of a workstation.
Planning departments can be subdivided into (a) production line departments; (b) fixed materials location
departments; (c) product family departments; (d) process departments. See Figure 4.9 for the material flow
systems (flow of materials, parts, and supplies within a facility considered in the flow process)
corresponding to theses departments. This figure is considered again in chapter 7 (Figure 7.1). Systematic
guidelines are summarized in Table 4.1 to combine workstations into planning departments.
Relationships
There are several types of relationships: organizational relationships, flow relationships, control
relationships, environmental relationships and process relationships. Success in grouping workstations to
form planning departments greatly depends on the ability of the planners to recognize all important inter-
departmental relationships
Flow Patterns
Patterns of flow exist within workstations, within departments, and between departments. For
examples, see Figure 4.13 for flows within product departments; Figure 4.14 for flows within process
departments; and Figure 4.15 for general flow patterns between departments.
Flow Planning
Flow planning results from an efficient integration of flow patterns and adequate aisles to provide
smooth and progressive movement. Essentially, there are three principles (guidelines) that can be used to
promote effective flow patterns: (1) maximize direct flow paths (no intersections, no backtracking); (2)
minimize flow (work simplification); (3) minimize flow costs. See Figures 4.18 and 4.19 for illustrations of
the impact of interruptions on flow paths, and the impact of backtracking on length of flow paths.
Flow Measurements
The relationships can be summarized into two new charts: (1) From-to chart for product
relationships; (2) relationship chart for service relationships. The first type of chart summarizes the flow of
product (pallets per week, for example) from one department (or machine) to another. The from-to-chart
can be constructed from the operational sequences for each part plus the production volumes, as indicated
on page 92 (book). This is illustrated in Example 4.2. The corresponding chart is given in Figure 4.22. The
second type of chart (developed by Muther) shows the relationship between service areas. Flows are
measured qualitatively using the following closeness relationships: A = absolutely necessary; E = especially
important; I = important; O = ordinary closeness acceptable; U = unimportant; X = not desirable to be
close. A typical chart is given in Figure 4.25. The procedure for obtaining it is outlined on page 94 of the
textbook.
18
Example
A factory has 4 planning departments (1,2,3,4). Product A is manufactured according to the sequence 1-2-
3-4 and product B according to the sequence 3-4-2-1-2. The daily production volumes of products A and B
are 10 and 20 parts, respectively. Both products A and B have similar sizes, shapes, and material handling
requirements. (a) Construct the from-to-chart indicating the number of trips from one department to
another. (b) Develop a relationship chart following these rules: A for any two departments with a total
number of trips (including both directions) equal to 40 or more; E for 30 or more but less than 40; I for
20 or more but less than 30; O for 10 or more but less than 20; U for less than 10.
Solution
(a) The from-to-chart for the given data is shown below:
From\To 1 2 3 4
1 - 10+20=30 - -
2 20 - 10 -
3 - - - 10+20=30
4 - 20 - -
(b) The relationship obtained from the specified rules can be obtained as follows. First, the number of trips
between any two departments needs to be calculated. The corresponding results are:
Between Departments 1 and 2: 50 trips.
From the specified rules, the following relationship chart is obtained:
Suggested Aisle Widths
Suggested Aisle Widths Aisle Width Depends Upon
For personnel only (2 persons to pass) 30 inches minimum Use of the aisle: material, personnel,
For two-wheel hand truck (no passing
or turning with load)
30 inches minimum Handling equipment, machinery, and
other equipment
For stock truck (where trucker must
pass around it)
20 inches plus width of
truck
Frequency of use: volume of traffic
(at peak loads)
For stock truck (where other trucks and
workers must pass)
38 inches plus two
times width of trucks
Speed of travel permitted or desired
One-way traffic or both
For hand-operated for truck, pallet
transporter, semilive skid and jack
5 to 8 feet, depending
on the nature of load
Possible future conditions of these
points
For 2,000-pound fork truck 8 to 10 feet
Space Requirements
1
2
3
4
A
O
E
U
I
U
19
Three methods for this are calculation, conversion, and space standards [Konz, 1994]. After using
either method, we put the space required for each department in a table indicating any special restrictions,
such as outside walls, cranes, special foundations, waste disposal, etc. For best planning list all utilities as
well as special problems, such as noise and heat.
A. Calculation Method
Number of Workstations
The calculations start with a routing sheet for each item or product made in the facility. Key
information includes machines used for each operation, setup time on each operation, and runtime per unit
on each operation. After this, all items made by each machine are compiled. Now for each part number
determine the lot size in each planning period. Continue by multiplying the production quantity for each
part by its production time. Include setup and run times. The next step would be to calculate the capacity
of each machine for the specified planning period. Finally, calculate the number of machines required:
divide required hours by available hours, allow a safety factor for service parts orders, future changes in
demand, and so forth. Of course, if your calculations show you need 2.4 machines, you will need 3
machines. However, capacity can be adjusted by methods other than buying additional machines. For
example: increase working hours, improve methods, process, equipment to increase hourly output, revise
production scheduling, buy instead of make.
The general formula for computing the decimal number of machines is shown below:
N =
Pt
H s p ( )
In the above formula, P is the daily production, H is the number of hours per day, t is the standard time in
hours per piece (see Appendix B), s is the daily set up time in hours, and p is the fraction of the time the
machine is up. For example, if P = 1600 pieces per day, t = 0.004 hours per piece (or 250 pieces per day),
H = 8 hours per day, s = 0.2 hour, and p = 0.90, then N = 0.912:
N =
1600 0004
02 090
( . )
(8 . )( . )
Space/Workstation
Each workstation is a mini-factory with its own receiving and shipping, production and storage
areas. The workstation space is equal to the machine space including travel (MSPACE), operator and
maintenance space (OMSPACE), and storage space (STSPACE):
WSPACE = MSPACE + OMSPACE + STSPACE
Space needs to be allocated on one or more sides of the machine for a seated or standing operator.
The operator needs to obtain and dispose of items as well as process items. Allow space for the operator to
reach the machine from an aisle. Allow sufficient operator space rather than the minimum of 24"x36".
Maintenance and service space allows access to machines that usually are not movable. Subdivision of
storage space are (1) input buffer storage of product; (2) supplies and maintenance materials; (3) tools, dies,
fixtures; (4) rework, scrap, waste; (5) output buffer storage of product. Supplies include empty containers,
packaging materials, tool bits, and so forth. Note that storage can be multiple level, so the square footage of
storage does not equal square feet of floor space.
Space/Department
20
For each department the space is equal to number of workstations multiplied by the workstation
space plus transportation space:
DSPACE = NWORKS x WSPACE + TSPACE
Transportation space is primarily for aisles but could include floor-level conveyors. In addition to within-
department space, we can add an allowance (e.g., 10%) for between department aisles.
B. Conversion Method
This method estimates the new space from the present space. This should be done department by
department, instead of directly doing it for the entire facility.
C. Space Standards Method
This method is most appropriate for service and storage areas. Using standards, we can estimate
the amount of toilet, shower, and locker room space. Office space might be allocated as 50 square feet for a
secretary, 70 for a professional, and 100 for a manager. Medical facilities might be 1 square foot per person
on the largest shift with a total minimum of 100 square feet. After using the calculation, conversion or
space standards method, put the required space for each department in a table indicating any special
restrictions, such as outside wall, crane, special foundation, waste disposal. List all the utilities for each
department (power, gas, water supply, telephone lines, computer lines, etc.) as well as special problems
(noise, heat, and special foundations).
Exercises
1. Explain the difference between a from-to-chart and a relationship chart, indicating when each chart is
more suitable.
2. Assume three products are made in four departments A, B, C, and D. Product 1 has a production volume
of 20 pallets/week in the sequence ABCDB. Product 2 has 10 pallets per week in sequence ACD. Product 3
has 4 pallets/week in sequence BD. (a) Construct a from-to-chart. (b) Propose a relationship chart for this
example. Explain your procedure.
3. A factory has 4 planning departments (1,2,3,4). Product A is manufactured according to the sequence 1-
2-3-4 and product B according to the sequence 3-4-2-1-2. The daily production volumes of products A and
B are 10 and 20 parts, respectively. (a) Construct the from-to-chart indicating the number of trips from one
department to another. (b) Develop a relationship chart following these rules: A for any two departments
with a total number of trips (including both directions) equal to 40 or more, E for 30 or more but less
than 40; I for 20 or more but less than 30; O for 10 or more but less than 20; U for less than 10.
Show all your calculations.
4. Describe each space determination method, indicating when each one is more appropriate.
5. List the five most important factors affecting aisle width.
6. Components 1 and 2 have similar handling requirements. Moving 2 units of either component 1 or 2 is
equivalent to moving 1 unit of component 3. The production volumes for Components 1, 2, 3 are 30, 12, 7,
respectively. Moreover, the routing sequences are A-C-B-D-E for 1, A-B-D-E for 2 and A-C-D-B-E for 3.
Find a from-to chart.
21
5. PROCESS FOR DEVELOPING LAYOUT ALTERNATIVES
Modern manufacturing techniques require a flexible approach to facilities planning. The first
principle of plant layout will continue to be "flow" [IE May 84]. Manufacturing will increasingly be
cellular in nature. A U-shaped flow pattern results in adjacent input and output areas and allows operators
to tend more than one machine more efficiently. The spine concept [IE March 83] for services and traffic
aisles is quite compatible with cellular manufacturing. As the need for long aisles continues to reduce, the
spine concept becomes more likely to be U-shaped. In the spine concept the building spine functions as a
human spine, an integrated connector of the circulatory and nervous systems. The spine contains the central
electricity, compressed air, heating, plumbing, telephones, and other systems as well as service facilities,
such as maintenance, offices, personnel, material handling. Typical shapes of the spine building are T-
shaped, X-shaped, and modular.
The following is a list of changes expected in modern manufacturing plants:
- Faster net flow through plant
- Reduced lead times
- Reduced setup times
- Reduced inventories
- Streamlined receiving
- Cooperation with suppliers
- Short conveyor runs
- Fewer forklift trucks
- Smaller-sized plants
- Precision placing
Alternative Types of Layouts
In Figure 7.1, already referred to in Chapter 4 (Fig. 4.9), Topic 4, we can see the flow patterns for
each of the following types of layouts: (a) production line departments; (b) fixed material location product
department; (c) product family departments; (d) process departments.
Systematic Layout Planning
Muther [1973] developed a procedure known as the systematic layout planning procedure (SLP)
procedure. The framework for SLP is shown in Figure 7.3. Its input consists of (A) products, quantities,
routing information, supporting services and standard time information, as well as all manufacturing
activities; (B) relationships of the various departments. From this input, two intermediate outputs are
established: flow of materials, and activity relationships (see Figure 7.4). These two outcomes are
combined together to produce the relationship diagram (Figure 7.5). This diagram places activities
spatially. Activities are represented by circles (nodes) and relationships by lines (arcs). The thicker the
line, the closer the relationship. From the information on this diagram plus that from space requirements
along with space available, we develop the space relationship diagram (Figure 7.6). Now, if we introduce
some modifying considerations along with practical limitations, we can develop a list of layout alternative
plans (Figure 7.7). Each plan goes through a systematic, objective and consistent evaluation to select the
most attractive plan.
SLP Pattern of Procedures
The following flowchart (Figure 7.3, textbook) shows the fundamental steps needed for the
application of SLP. As indicated before, the input includes: products, quantities, routing sheets, supporting
services, standard times, and all manufacturing activities grouped into planning departments.
The SLP procedure can be used at the block (department) level or the detail (machine) level. The
relationship chart is the first step. In order to do this, the facility is divided into convenient activity areas
(office, lathes, drill press, etc.). Avoid too many A relationships. There is a better chance of being able
22
to satisfy high-priority relationships in a relationship diagram if the proportion of Us (unimportant) is
50% or more. Typical reasons for closeness are: 1 = product movement; 2 = supervisory closeness; 3 =
personnel movement; 4 = tool or equipment movement; 5 = noise and vibration.
The next step is to assign floor space to each activity area, along with physical features and
restrictions. This space should be sufficient for the machine (s), operator (s), material, maintenance access,
etc. After this, the following step is to make an activity relationship diagram to group all the activities. List
all A relationships, then the E relationships, and so on. Now make a diagram with just the A
relationships. Then add the E relationships, keeping in mind the restrictions associated with the I
relationships. Repeat this for all remaining closeness codes.
The next step is to make a scaled layout of at least two trials (because engineers are satisfiers
rather than optimizers) from the previous step, using the areas and restrictions already identified. After this,
the alternatives are evaluated following an objective procedure that results in a score. Ordinarily, factors
and weights are combined to do this. The final step is to detail the layout. At this step, the department
boundary lines are replaced with exterior walls (with doors), interior walls (with doors), and no walls (just
departmental boundaries). Redefine the estimates of the number of machines and operators, material
handling, aisles, utility needs, service areas, etc.
Exercises
1. Read textbook, pp. 286-291 and pp. 293-295 (SLP).
2. Explain how to obtain a relationship chart from a from-to-chart.
3. Summarize all important steps of the SLP procedure.
4. Textbook, Problem 7.12, page 319.
SLP Procedure
Input Data: P, Q, R, S, T and Activities
1. Flow of Materials
2. Activity Relationships
3. Relationship
Diagram
4. Space
Requirements
5. Space Available
6. Space Relationship
Diagram
7. Modifying Considerations 8. Practical Limitations
9. Evaluation
Plan X
Plan Y
Plan Z
Selected Layout
Plan
23
6. OVERVIEW OF COMPUTER-AIDED LAYOUT PROCEDURES
Introduction
The cycle of facilities design and management can be described as follows [IE September 80].
When a new plant is to be built, a site selection analysis must be conducted to determine where to build the
plant. Once a site is selected, the preparation of data for the layout planning process is needed. This will
eventually produce an overall layout. From this we proceed to developing a detailed layout. From the
overall layout and the detailed layout we can develop a process to compare the alternatives. At this point
we can use a computer for storing layouts with computer graphics. After this we continue with the
installation of the best alternative. Once the installation is in place, the facilities management information
system is maintained to provide information required when the next change is made. The loop is complete
now. The current trend is to build an information-based manufacturing system.
The first area in which the computer became a powerful tool was the overall layout development.
In the early 60's heuristic procedures were developed to design block plan layouts. Today we can find a
great number (possibly 100 or more) programs developed mostly as theses and dissertations in a number of
universities. These procedures require a substantial amount of programming. These computer heuristic
procedures can be grouped into three categories, depending on the logic used to develop the block plan: (1)
construction heuristics; (2) improvement heuristics; and (3) network-based procedures.
The input information required by computerized procedures consists of (a) from-to-chart or
relationship chart; (b) area requirements for departments; (c) in some cases, cost information on material
handling. As already explained, the relationship chart indicates closeness codes between departments (A =
absolutely important, E = especially important, I = important, O = ordinary closeness, U = unimportant, X =
not desirable to be close).
Construction Procedures
These procedures start with an open floor space and construct a single floor layout logically, based
upon input data, a relationship chart, and space allocations. A partial list of these procedures includes:
- CORELAP: Computerized Relationship Planning.
- PLANET: Plant Layout Analysis and Evaluation Technique
- ALDEP: Automated layout design Program
The general steps of construction procedures are:
1. Transplantation: input from problem is represented as input for program
2. Selection: departments are selected according to their relationships and a closeness rank
3. Placement: using the selection order and a logical procedure the layout is generated
4. Evaluation: the layout is given a score that indicates its overall value
Improvement Procedures
These procedures require a feasible layout as input and continue to modify the layout by swapping
areas and scoring the revised layouts until no further improvement can be found. The scores are based upon
a from-to chart, which is part of the input. Two well-known improvement-type procedures are:
- CRAFT: Computerized Relative Allocation of Facilities Technique
- COFAD: Computerized Facilities Design
24
Network-Based Procedures
A smaller number of network-based procedures has been developed. The first procedure of this
kind was RUGR. This procedure requires a relationship diagram as input. Another procedure in this class
is PLANTAPT.
A Micro-Computerized Procedure for Layout Design
S. Khator and C. Moodie published the computerized procedure considered in this section in the
March 1983 issue of Industrial Engineering. The program accepts input in the form of a relationship
matrix. Then using the closeness codes A, E, I, O, U and X, it determines a closeness rank and a selection
order of departments. After giving numerical value to each closeness code, the departments are placed on
the layout according to the predetermined selection order, in such a way that the score of the layout will be
as high as possible.
Closeness ranks are determined on the basis of the number of A, E, I, O and X closeness
relationships. A method for doing this, for example, is to consider first the departments having A
relationships, then those having E relationships, and so on. The department having the largest number of A
relationships is assigned rank 1. In case of ties, the rank will be decided by the largest number of E
relationships; if ties continue to exist, they will be broken by the largest number of I relationships, and so
on. If two departments have the same number of A, E, I and O relationships, the one having the lowest
number of X relationships will be chosen first. Once all departments having A relationships are assigned
closeness ranks, those departments having E relationships are considered, and so on. At the end of this
procedure each department is assigned a rank, rank 1 for the most important, rank 2 for the one next in
importance, and so on.
Departments are selected according to the following procedure. The first department is that
assigned rank 1. The second department is one having an A relationship with it; in case of ties, these will be
broken by selecting the department having a higher level of importance, as measured by the closeness rank.
Subsequent departments are chosen on the basis of the total number of A, E, I and O relationships between
the department being selected and all those already selected, using the rank to break ties.
Departments are then placed on the open floor space according to the selection order. In this
procedure, those departments having high closeness relationships should be together. For each pair of
adjacent departments the corresponding numerical value of the closeness relationship can be added to the
score of the layout. The program prints the closeness ranks, the selection order, the closeness matrix
(indicating which departments are adjacent by means of entries equal to 1; and entries equal to 0 otherwise),
and the layout score.
Example
Departmental Area Requirements
Departments Area (sq. ft.)
1. Receiving 12,000
2. Milling 8,000
3. Press 6,000
4. Screw Machine 12,000
5. Assembly 8,000
6. Plating 12,000
7. Shipping 12,000
25
Activity Relationships
Outline of Procedure
A. Find Closeness Rank
The Closeness Rank is calculated for each of the departments on the basis of the number of A, E, I,
O, and X relationships. The department having the largest number of As will receive rank 1. If several
departments have the same number of As then rank 1 corresponds to the one with the largest number of
Es, and so on. If two departments have the same number of A, E, I, and O relationships, the department
having the lowest number of X relationships will be ranked first.
Departments # of As # of Es # of Is # of Os # of Us (not considered) # of Xs
1. Receiving 0 1 1 2 2 0
2. Milling 0 2 2 0 2 0
3. Press 0 0 0 2 4 0
4. Screw Machine 0 1 2 0 3 0
5. Assembly 1 0 3 1 1 0
6. Plating 1 1 1 1 2 0
7. Shipping 0 1 1 0 4 0
Departments having the largest number of A relationships (one each): 5, 6. In this case there is a
tie between department 5 and 6. Now we look at the number of E relationships for departments 5 and 6:
Department 6 1A, 1E
Department 5 1A, 0E
Department 6 has the largest number of Es. Department 6 will receive rank 1 and department 5 rank 2.
Choose department 6 and then 5.
Now we consider departments 1, 2, 3, 4, and 7. None of these have A relationships. Now we look
for E relationships:
1 0A, 1E
2 0A, 2E
3 0A, 0E
4 0A, 1E
7 0A, 1E
Therefore, department 2 will receive rank 3.
Department 1, 4, 7 have the same number of E relationships. We look for the number of I
relationships now. After this, we have the following:
Receiving (A)
Milling (B)
Press (C)
Screw Mch. (D)
Assembly (E)
Plating (F)
Shipping (G)
1
2
3
4
5
6
7
1
2
3
4
5
6
7
U
U
U
U
I
E
U
I
O
U
A
O
I
U
I
I
E
U
O
U
E
26
1 1E, 1I
4 1E, 2I
7 1E, 1I
Department 4 will receive rank 4.
Department 1 and 7 have the same number of I relationships. Then we look for O relationships:
1 1I, 2O
7 1I, 0O
Department 1 will receive rank 5 and then department 7 will receive rank 6. Finally, department 3 will
receive the last rank, rank 7. In conclusion, the following ranks have been obtained:
Rank 1 2 3 4 5 6 7
Dept. 6 5 2 4 1 7 3
B. Find Selection Order
The selection order is determined by first selecting the most important department (rank 1). Thus,
department 6 is selected first. The next department to be selected will be one having an A relationship with
the department selected earlier. If there is no department that has an A relationship, the search is made for a
department with an E relationship, and so on. In case of ties the department with the lowest rank (i.e., most
important) is selected. Looking at the Activity Relationship Requirements Diagram, it is found that
department 5 has an A relationship with department 6. Department 5 is selected second.
For the remaining departments 1, 2, 3, 4 and 7 we have to find the department that has the best set
of relationships with departments 6 and 5:
Relationship with the
departments already selected
Dept. 1 Dept. 2 Dept. 3 Dept. 4 Dept. 7
# of A relationships 0 0 0 0 0
# of E relationships 0 0 0 0 1
# of I relationships 0 2 0 1 1
# of O relationships 1 0 1 0 0
Department 7 has 1E and 1I relationships with those chosen. Note that this is better than
department 2s two I relationships. Therefore, department 7 is selected third. As an exercise, the students
can verify that the following selection order of departments is obtained:
Selection 1 2 3 4 5 6 7
Dept. 6 5 7 2 4 1 3
C. Generate and Evaluate the Layout
Departments are physically arranged including them in the order previously specied. In this
process those departments having higher closeness relationships should be adjacent if possible, keeping in
mind constraints on departmental area and total layout area. To score the layout, the closeness relationships
are given numerical values (for example, A = 8, E= 6, I= 4, O = 2, U = 0, X = -8) and for every adjacency
shown on the layout, the correspoonding numerical value is added to the score.
An Overview of Selected Available Programs
27
I. Computerized Relative Allocation of Facilities Technique (CRAFT)
This is a program designed to physically arrange the departments in a facility layout. It uses a
path-oriented improvement routine based on pair-wise and three-wise exchanges of departments. The final
layout is dependent on the initial layout. For this reason, it is suggested to try different initial layouts. The
goal of the CRAFT program is to minimize the total transportation cost. The transportation cost for a
particular move between two departments is defined as the product of the number of trips by the
corresponding distance and then by a specified cost per unit distance. As a result of this, transportation
costs are not directly associated with the material handling equipment used. The CRAFT procedure makes
the following assumptions: (1) the facility has a rectangular or squared shape, and (2) the facility has no
interior void spaces. These assumptions can actually be satisfied in most cases by creating dummy
departments in the desired layout.
Input
1. Number of departments (up to 40).
2. Plant area, length, and width.
3. Number of bays.
4. Department areas.
5. Number of trips and cost per unit distance between departments.
6. Initial layout as a sequence of departments (some can be fixed in the sequence).
7. Selection of rectilinear or Euclidean distances to compute the cost.
Output
1. Graphical display of the arrangement.
2. Total cost.
1. Compute centroids for departments in the initial layout.
2. Create distance matrix between centroids.
3. Compute transportation cost of initial layout.
4. Consider interchanges of department with equal area of with common borders.
5. Select the interchange with the greatest cost reduction.
6. Compute cost and repeat the procedure until no further reductions in cost are obtained.
II. Computerized Facility Design (COFAD)
This program is basically a modification of CRAFT to incorporate material handling alternatives.
Its goal is to jointly select a layout and a material handling system that will result in a minimal or
significantly reduced transportation cost. The cost associated with a move between two departments is
defined as follows, depending on the type of equipment used: (a) For fixed-path equipment: (cost) =
(variable cost) x (length of move) + (non-variable cost.) (b) For mobile equipment: (cost) = (variable cost)
x (time of move) + (non-variable cost) x (equipment utilization.)
Input
The input data for running the program are in essence the same data required for running CRAFT.
In addition, material handling equipment information is required.
Output
The output of the program consists of a factory layout and the recommended material handling
system for each move between departments.
28
Again, the procedure of the COFAD program follows the same general guidelines of the CRAFT
procedure. In the case of COFAD, the overall procedure can be viewed as consisting of two phases:
1. Alternate between improving a layout and improving its material handling system.
2. Stop when fluctuations in flow volumes do not result in reduced total costs.
III. Plant Layout Analysis and Evaluation Technique (PLANET)
This program is used to generate and evaluate plant layouts. It does not restrict the final layout to
having a uniform shape, nor does it allow fixing departments to certain locations resulting in unrealistic
layouts. The best use of this technique is for generating an initial layout, which can be use as input to an
improvement procedure. The measure of effectiveness is defined as total handling costs. The program
assumes that the flow between departments is the same in both directions.
Input
The input data are again similar to those required by CRAFT. However, PLANET allows three
different ways of describing the material flow: (1) by means of a production sequence of all parts to be
moved within the facility, plus the cost per move; (2) by means of a from-to chart; (3) by a penalty matrix or
relationship chart.
Output
The output consists of the plant layout along with its evaluation.
PLANET uses three different methods for selecting departments:
1. Start with the two departments with highest priority and highest flow-between cost. Keep on adding
departments according to the highest priority and highest flow-between cost to any department in the
group already selected.
2. Start with the two departments with highest priority and highest flow-between cost. Keep on adding
departments according to the highest priority and highest sum of flow-between costs to all the
departments already selected.
3. Start with the department of highest priority and highest sum of flow-between costs to all other
departments. Keep on adding departments in the same manner. The first two selected departments are
placed side by side, and the next selected department is located around the existing departments as to
minimize the increase in handling cost.
IV. Computerized Relationship Layout Planning (CORELAP)
This is a layout construction program. It uses the total closeness rating (TCR), which is the sum
of all numerical values assigned to the closeness relationships in a relationship chart (A=6, E=5, I=4, 0=3,
U=2, X=1) between a department and all other departments. Its goal is to generate a layout using as
measure of effectiveness a layout score that depends on the TCR.
Input
The input data required for running the program consist of departments information and a
relationship chart.
29
Output
The output from the program is a plant layout along with the score.
1. It starts by selecting the department with highest TCR and placing it in the center of the layout.
Whenever there is a tie, the department with the largest area is selected or the department having the
lowest department number in case of equal areas. The second department to be selected is one with an A
relationship with the one selected; if none exists then an E relationship; if none exists then an I
relationship, and so on. In case of ties use the department with highest TCR, or the one with largest area,
or the one with smallest department number as before. The third department to be added is the one with
an A relationship with the first department or with the second department. When such a department is not
found, try a next-best relationship code until one is selected. In case of ties use the same tie breaking
rules explained earlier. This procedure is repeated until the departments are assigned.
2. Once a department is selected, it is located in such a way as to minimize the sum of the numerical values
assigned to the closeness relationships with all the neighboring departments.
3. A layout score is then computed for the final layout as the sum for all departments of the products of
numerical closeness ratings and lengths of shortest paths.
V. Automated Layout Design Program (ALDEP)
This program has the same basic requirements and achieves the same objectives as CORELAP. It
differs in the way the first department is selected and how ties are broken, which is at random. Another
difference is that CORELAP tries to generate a good layout, while ALDEP can generate up to 20 different
layouts, rates them, and lets the user make the selection.
Input
1. Department information.
2. Relationship chart.
3. Sweep width.
4. Minimal closeness rating.
5. Minimal layout score.
Output
The output from the program consists of up to twenty layouts with their associated ratings.
1. The program starts by selecting a department randomly and adding departments in a manner, which is
similar to that followed by CORELAP. In case of ties, they are broken randomly as well. In addition, any
selected department must comply with a minimum closeness rating (user specified); if no department
satisfies this requirement, the program will select one at random.
2. The placement of departments is done by locating the first one on the upper left corner of the floor space,
and proceeding downward with the remaining departments. The user specifies the width of the downward
extension (referred to as the sweep width). When the bottom of the layout is reached it continues with a
process of sweeping departments upwardly and downwardly until all departments are located.
3. Once the layout is completed, it is rated by assigning values to the closeness relationships between
adjacent departments. The score for the layout increases by 64 if two adjacent departments have an A
30
relationship, 16 for an E, 4 for an I, 1 for an O, and nothing for a U; the score is decreased by 1024 for
an X relationship.
VI. BLOCK PLAN
The program generates and evaluates block type layouts. It features different layout generation
methods and multi-story layouts. It does both, generation and improvement of layouts. The generation is
done by either randomly locating the departments or by considering the relationships between departments.
The improvement is done by pair-wise exchange of departments.
Input
1. Number of departments (up to 18).
2. Department names and areas.
3. Relationship chart or from-to-chart.
4. Length/width ratio of the plant.
5. Product information: number of products, number of unit loads, department sequence
6. Information of any department with fixed location.
Output
The output from the program consists of a graphical display of the plant layout along with the
corresponding score.
Exercises
1. Read the descriptions given in the textbook, Chapter 8.
2. See Examples 8.1 and 8.2.
3. Read the article "A Microcomputer Program To Assist In Plant Layout", IE March 83. (a) Summarize
the content of the article; (b) clearly state the procedures for determining the closeness rank and selection
order; (c) make up a numerical example to illustrate the use of these procedures.
4. Find: (a) closeness rank; (b) selection order; (c) a proposed layout for a rectangular factory floor (show
department locations considering arbitrary departmental areas) and the score of the layout using A = 8, E =
4, I = 2, O = 1, U = 0, X = -8. Consider the following relationship chart for a layout consisting of five
departments:
5. Consider the following Activity Relationships. (a) Find closeness ranks. (b) Find selection order.
1
2
3
4
5
1
2
3
4
5
I
A
O
O
U
O
E
A
X
E
Receiving
Milling
Press
Screw
Machine
Assembly
Plating
Shipping
1
2
3
4
5
6
7
1
2
3
4
5
6
7
U
U
U
U
I
E
U
I
O
U
A
O
I
U
I
I
E
U
O
U
E
31
6. Consider the following relationship chart for a layout consisting of 5 departments. Find the closeness
ranks and the selection order of the departments.
7. In Problem 6, generate the best layout you can determine for a rectangular factory floor consisting of
three bays. Assume all departments have the same area and only two departments fit on one bay.
Determine the score using A = 8, E = 4, I = 2, O = 1, U = 0, X = -8.
8. A manufacturing facility consists of eight departments A, B, C, D, E, F, G, and H. It produces six
components 1, 2, 3, 4, 5, and 6. The manufacturing product routings and production volumes are as
indicated below:
Component Production Routing Units per Week
1 A-B-G-H 20
2 A-C-D-H 25
3 A-D-E-F-H 10
4 A-B-C-E-H 30
5 A-B-C-D-H 15
6 A-E-F-G-H
Assume the following space requirements given in blocks of 20' by 20': Department A: 50, Department B:
30, Department C: 60, Department D: 40, Department E: 5, Department F: 5, Department G: 10, and
Department G: 20. Run CRAFT to recommend a design that can be arranged on a rectangular floor of at
most 600 feet in length by at most 200 feet in width. In the process of selecting the best design, several
alternatives can be developed to choose the one considered to be most attractive. Different alternatives can
be generated by changing the number of bays, the initial sequence, and or fixing departments in the initial
sequence. Assume that rectilinear (rectangular) distances instead of Euclidean (straight line) distances
between departments are used. Moreover, assume that material handling costs per unit of distance are equal
to one.
9. A manufacturing facility consists of five departments 1, 2, 3, 4 and 5. It produces four components
having the manufacturing product routings and production volumes indicated below:
Component Production Routing Units per Week
1 1-2-3-4-5 20
2 2-3-5-1 25
3 4-5-3 10
1
2
3
4
5
1
2
3
4
5
I
U
O
O
U
O
E
A
X
A
E
32
4 5-4-3-2-1 30
(a) Generate a from-to-chart. (b) Propose a relationship chart using the following rules: A for 85-66 trips
between departments, E for 65-46, I for 45-26, O for 25-6, and U for 5-0. (c) Find closeness ranks and
selection order. (d) Generate the layout with maximal score using A = 8, E = 4, I = 2, O = 1, and U = 0
points.
33
7. MATERIAL HANDLING AND CONVEYOR MODELS
PART I: PRINCIPLES AND EQUIPMENT
PART II: CONVEYOR MODELS
PART I: MATERIAL HANDLING PRINCIPLES AND EQUIPMENT
According to the Material Handling Institute (MHI), "material handling embraces all of the
basic operations involved in the movement of bulk, packaged, and individual products in a semisolid
or solid state by means of machinery, and within the limits of a place of business." First, material
handling involves the movement of material in a horizontal (transfer) and vertical (lifting) direction, as well
as the loading and unloading of items. Second, materials moved include raw material to workstations, semi-
finished products between workstations, and removal of finished products to their storage locations. Third,
the selection of equipment is an important activity of designing a material-handling system. Fourth, the
term bulk indicates that materials are moved in large, unpacked volumes (such as sand, sawdust, and coal).
Fifth, using machinery for handling material is the preferred method, although the investment might be high.
A summary of the objectives of material handling [Sule, 94] are:
1. Increase efficiency of material flow
2. Reduce material-handling cost
3. Improve facility utilization
4. Improve safety and working conditions
5. Facilitate the manufacturing process
6. Increase productivity
Material handling can account for 30-75% of production costs and can reduce operational costs by
15-30%. It affects building requirements, departmental arrangements, and production time. For a list and
short description of material handling principles see Table 6.2. There are three main types of handling
equipment: conveyors, cranes, and trucks. Section 6.6 of the textbook provides additional types. A
comprehensive list and brief descriptions of typical material-handling equipment can be found on pages
176-226. A similar list can be found in Sule 94 [Section 8.14].
The 10 Principles of Material Handling
A principle can be defined as a general rule, fundamental, or statement of an observable fact. In
the field of material handling principles can be invoked to analyze, plan and manage material handling
systems. In 1968 CIC-MHE published a preliminary set of principles, which have undergone a sequence of
reorganizations and redefinitions during the last three decades, as a result of additional knowledge
generated by a substantial number of practitioners in the field. In essence, the material handling systems
can be considered as general guidelines that can be used to compare and evaluate material handling
systems. The following list includes the 10 most important principles used today in the field:
Planning Principle:A material handling facility should be the result of a cohesive and structured unit of
specific courses of action (i.e., a plan) to determine what material needs to be moved, when and where it
will be moved, and how it will be done.
Standardization Principle: Methods, equipment, control devices, and software should be standardized
without reducing the level of performance and the need for flexibility.
Work Principle: Material handling flow should be as low as possible within the requirements demanded by
the effectiveness and efficiency of a material handling system. The best flow is no flow.
Ergonomic Principle: Material handling activities should be designed and proper equipment chosen after
taking into consideration human capabilities and limitations to enhance the level of safety and working
conditions.
34
Unit Load Principle: The amount of material to be moved or stored as a unit should be sized and
configured according to the specific needs and objectives of the material handling facility.
Space Utilization Principle: The cubic space should be used as effectively and efficiently as possible.
System Principle: A material handling system consists of a collection of elements working and interacting
together as a unit to perform a common function. Alternatively, material handling activities and facilities
are integrated to form a coordinated operational system including receiving, inspection, storage, production,
assembly, packaging, load unitizing, order selection, shipping, transportation and returns handling.
Automation Principle: The level of mechanization and automation depends on the specific operational
requirements and financial capabilities of each situation.
Environmental Principle: Environmental impact and energy consumption should be important factors in the
selection of a material handling system.
Life Cycle Cost Principle: In the economic analysis of a material handling system all cash flows need to be
considered along the service life of the system.
Conveyors
Conveyors are used for machine-to-machine movement, assembly operations, department-to-
department movement, and linkage of production with automated storage and retrieval systems along fixed
paths. The American Material Handling Society lists 57 types of conveyors. Conveyors move materials
continuously over a fixed path. Typical functions of conveyors are:
- Transportation
- Storage
- Pacing
Conveyors have adjustable speeds, their capacity is high, they can combine transferring with
processing and inspection, can serve as temporary storage facilities between workstations, can be controlled
automatically, and allow the utilization of the cube through the use of overhead conveyors. However, they
can serve limited areas because of the fixed paths, can generate bottlenecks if not properly controlled, and
hinder the movement of mobile equipment on the factory floor.
Monorails, Hoists, and Cranes
Cranes and hoists are overhead equipment for moving loads intermittently within a limited area.
Bridge cranes, jib cranes, monorail cranes, and hoists are examples of this basic type of equipment. Lifting
equipment is also generally capable of transferring material. It can handle very heavy loads, and it can be
used for loading as well as unloading. However, it is expensive, it serves a limited area, and its utilization
may not be very high.
Industrial Trucks
The purpose of these trucks is to carry loads over varying paths. There are several types, such as
lift trucks, hand trucks, fork trucks, trailer trains, and automated guided vehicles. Several types of trucks
are capable of loading, unloading and lifting, as well as transferring. However, generally, they cannot
handle very heavy loads, their capacity per trip is limited, must be driven by an operator, and cannot
combine handling with processing and inspection.
Equipment Description
35
A. Conveyors
Chute Conveyor
A chute conveyor is a slide, generally made of metal, which guides materials as they are lowered
from a higher-level to a lower-level workstation. The shape of the chute can be straight or spiral to save
space.
Wheel Conveyor
This kind of conveyor consists of wheels attached to side rails supported by a steel frame. The
load is carried on the wheels, each of which rotates about a fixed axis. It can be gravity-operated or power-
driven. Wheels can be made of steel, aluminum, or plastic. Most flat-bottomed surfaces will convey
satisfactorily on wheel conveyors. If the part does not have a flat surface, it may ride in a box or on a small
pallet.
Roller Conveyor
A roller conveyor consists of rollers attached to side rails supported by a steel frame. The load is
carried on the rollers, each of which rotates about a fixed axis. The type of roller (steel, rubber, and wood)
and the spacing of rollers depend on the type of load to be carried. It can be gravity-operated or power-
driven. Gravity-operated conveyors have a slight downward slope (pitch), commonly equal to 3-6 inches
36
per 10-ft section. On the power-driven conveyor, some of the rollers are driven by chains or belts to
provide the motion for the material on the conveyor.
Pneumatic Tube System
A pneumatic tube system consists of a cylinder in which messages or small items are carried over a
predetermined path by compressed air or vacuum. The requirement for a constant pressure or vacuum
results in high operating and maintenance costs for large, complex systems.
Belt Conveyor
A belt conveyor is an endless belt, driven by power rollers or drums at one or both ends and
supported by flat beds or rollers. These rollers can provide a flat belt or a through conveyor. The belt is
made of rubber, woven wires, metal or fabric. Occasionally it can be magnetic. Portable belt conveyors are
so popular they come in standard units.
37
Chain Conveyor
With a chain conveyor, an endless chain transmits power from a motor to a carrying surface or
unit. The carrying unit can be quite varied. Specific examples of chain conveyors are flight conveyors
(flights are "blades" attached perpendicular to the chain), apron conveyors, bucket conveyors, and slat
conveyors. An apron conveyor is similar to a slat conveyor, the only difference being the partial
overlapping of the slats in the apron conveyor to provide a continuous moving surface. A special type of
chain conveyor is the trolley or tow conveyor (a powered trolley on a rail). The trolley is connected to a
motor by a chain or cable.
38
Conveyor Control
The control system has four basic elements: input interface, logic, memory, and output interface.
The input interface takes voltages or currents from switches, relays, and temperature or pressure sensors; it
then transforms these power signals into power levels suitable for the control system logic device. The
logic takes the input and actuates devices in specific sequences. The output electromechanical devices and
motors generally need line voltage; the output interfaces boosts the low-powered logic commands.
Accessories
A variety of accessories is available. Some of the most widely used accessories are: pallets, boxes,
tote pans, skids, and optical code or bar code readers. A pallet is a platform on which material can be
stacked in unit loads and handled by lifting equipment such as the forklift. A box is a portable container
(11.5 in x 2.75 in x 2.75 in to 71 in x 18 in x 19 in) in which parts or material can be stored in unit loads.
Boxes are made of cardboard, wood, plastic, or metal. A tote pan is a portable container (16.75 in x 10.75
in x 3 in to 46 in x 34 in x 33 in) that is smaller in size than a box. It is used to carry small parts. Tote pans
are made of plastic, metal, or wood. They can be moved either by power-driven or hand-operated devices.
A skid is similar to a pallet, except that the construction does not permit stacking of loaded skids on top of
each other. They are made of metal or heavy wood and are used to store and move heavy and/or bulky
materials. They can be moved manually or mechanically and can be made portable by attaching two wheels
on one end and a carrying dolly at the other. An optical or bar code reader is a hand-held device that can
read an optical code to identify the product or handling device on which the code is affixed. They can be
used to keep track of inventory or products as items are moved from station to station.
B. Hoists and Cranes
Overhead Monorail
A track to transport carrying devices such as trolleys and hooks. The track itself can form a closed
loop. Often used in transporting units to spray paint booths or baking ovens. Generally placed at 8 to 9 feet
from floor. In the following diagram, we show a monorail telpher. A telpher is a light car suspended from
and running on aerial cables. Usually, they are propelled by electricity.
39
Hoist
A hoist is a lifting device attached to monorails, cranes, or a fixed point. A hoist can be powered
manually or by electric or pneumatic motors. A hoist is a lifting device itself. It is frequently named by the
kind of crane to which it is attached. There are three major types: chain hoist (serves a fixed spot directly
beneath the hoist), monorail hoist (free to move along an overhead rail), jib hoist (serves any area
circumscribed by the jib in a 360-degree rotation).
Cranes
40
A crane is a piece of overhead equipment consisting of a boom or bridge along which a handling
device, such as a hoist, traverses. A jib crane consists of a lifting device (hoist) traveling on a horizontal
boom mounted on a vertical mast (pillar jib crane, bracket jib crane, cantilever jib crane). The horizontal
boom can rotate to achieve a wide range of coverage. A bridge crane consists of a lifting device mounted
on a bridge, which is supported at each end by tracks riding on or suspended from runways installed at right
angles to the bridge. Variations include: stacker crane, tower crane, gantry crane. A tower crane consists of
a hoist that travels on a horizontal boom attached at one end to a vertical post, with the other end of the
boom being supported by a guy line to the top of the post. A gantry crane is basically a bridge crane with
the boom supported at one or both ends by vertical gantry legs traveling on rails installed at ground level
(instead of on an overhead runway). A monorail crane consists of a beam, which supports a carrying device
mounted on wheels, which run along the beam. A stacker crane is one with a vertical beam suspended from
a carriage, mounted on a device similar to a bridge crane, and is fitted with forks or a platform to permit it
to place items into or retrieve items from storage racks on either side of the aisle it traverses.
41
42
C. Industrial Trucks
Handcart/Truck
A handcart or hand-truck is a wheel-mounted platform with handles to manually push or pull the
unit.
43
Tier Platform Truck
A tier platform truck is a hand-truck with one or more additional platforms stacked vertically.
Hand Lift Truck/Pallet Jack
This is a hand-operated truck that can raise loads hydraulically or mechanically to clear the floor
before transporting them to the desired destination.
Power-Driven Hand-truck
Similar to a hand lift truck, except that it is driven by a battery-operated electric motor.
44
Power-Driven Platform Truck
A much larger device than the power-driven hand-truck. It carries load and operator. A diesel or
gasoline engine or an electric motor supplies power.
Forklift Truck
A forklift truck is an operator-ridden, power-driven truck with forks in front that lift and carry
heavy loads on skids or pallets.
45
Tractor-Trailer Train
This is a series of carts pulled by a self-propelled tractor. It is mainly used for stop-and-go
operations carrying loads within 200 to 300 feet.
Narrow-Aisle Truck
This is a variation of industrial truck specifically designed for aisles. Electricity or gas powers it.
Variations include: side-loader truck (forks on the side rather than the front), straddle truck (with out-
riggers to balance loaded truck), reach truck (fork truck with telescoping forks to reach loads that are set
back), order-picker truck (with a platform that lifts operator), turret truck (with forks that can rotate left or
right to place or pick up a load without the truck having to turn in an aisle).
Dolly
A hand truck consisting of a small rectangular, triangular or circular load carrier with one or more
rollers, casters, or wheels. It is used for transporting relatively light weights and low volumes short
distances.
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Automated Guided Vehicle System
An AGV is a computer-controlled vehicle that moves along a predetermined path and performs
certain duties, according to instructions sent by a system operator located at a station. Barret Electric
(driverless tractor) introduced the first AGV in 1953. It was originally designed as a towing tractor that
followed a guide wire and was used primarily in warehouses. AGVs were introduced into the U.S. from
Europe in the mid-1970s and were used almost exclusively to interface with automated storage and retrieval
systems.
The early AGVs were designed to follow a wire embedded in the floor as guidance and were able
to make only the simplest routing decisions. This wirepath option was the only viable option until the early
1980s. Two general categories of guidance systems have evolved ever since: (1) Guidepaths such as
reflective tape, which are easy to apply and modify. (2) Deadreckoning along with reference markers, such
as magnets embedded in the floor, rather than a path. These new technologies are able to expand the
flexibility of installing the AGVs system in areas where buried wire would have been impractical or
impossible.
AGV systems have typically been used to move large, heavy loads. The traditional applications of
AGV systems have primarily involved moving pallet load throughout distribution warehouses and highly
automated manufacturing facilities, especially in the automotive industry. Recent applications of AGVs
are using smaller AGV systems in the light manufacturing and assembly facilities (delivering raw materials,
totes, and WIP), as well as in the office and other industrial applications (moving items as diverse as mail,
laundry and hospital meals). The applications of AGVs have moved from being used by the largest
companies to smaller companies in simple, but effective, applications. The benefits of AGV systems are
flexibility, space utilization, safety, and overall operating cost. Appendix D shows a survey of AGV
manufacturers, including specifications and costs.
Note:
In the following tables you will find a guide for selecting material handling equipment, as well as
cost estimates of typical pieces of material handling equipment. This information should be helpful to find
needed data for your design project.
47
Guidelines for Selecting Material Handling Equipment
The material in this section is adapted from a publication by the General Electric Company.
Purpose Types of Equipment
Use conveyors Where units loads are uniform.
Where the materials move, or
can move, continuously.
When rate of movement, unit
loads, and location of route are
not likely to vary.
Where cross traffic can be
bypassed by the conveyor.
Types of conveyors include gravity, roller, wheel, spiral,
live roller, belt, chute, trolley chain, floor chain, apron,
pusher bar, vertical tray, reciprocating, pneumatic,
automatic, and portable.
Almost every kind of fixed-path handling can be done by the many kinds of conveyors available. Each has its
particular advantage and application, and none should be chosen until the others types have been investigated.
Use Cranes or
hoists
For intermittent movements
within a fixed area.
When materials are of variable
size or weight.
For movement of materials free
from concern about cross traffic
on the ground or variation in
load.
Hoists are commonly divided into three classes: chain, air,
and electric hoist. The electric hoist has the widest
application since its high speed results in economic
operation. Common types of cranes are the portable crane,
the jib crane, the derrick, the gantry, and the overhead
traveling bridge crane.
The prime function of the hoist and crane is lifting.
Use industrial
trucks
Where materials must be picked
up and moved intermittently
over various routes.
Where materials are either of
mixed size and weight or of
uniform size.
Where distances are moderate.
When cross traffic exists.
When there are suitable running
surfaces and clearances.
Where the operation itself is
principally handling.
Where unit loads are utilizable.
Industrial truck equipment can be broken down into hand-
operated trucks, tractors, platform, high and low lift trucks,
and fork trucks. Trucks are further classified by their power
source: (1) battery electric, (2) gas electric, and (3) gas
mechanical. Tractor-trailer trains may be selected where the
conditions prescribed for the industrial truck are met, but
where horizontal transportation over greater distances is in
the main requirement.
There are many adaptations of industrial trucks, each designed to accomplish a specific type of job. They are so
flexible in operation that the integration of the industrial truck system with the crane or conveyor systems
satisfactorily answers most material-handling problems.
48
Material Handling Equipment Cost Estimates (From Konz, 1994)
- Container Prices Estimates (1991)
Type Cost
($)
Design Factors Application Notes
Shop Pans (metal) 10-50 Hopper front and rear, usually with
carrying handles, variety of sizes
For handling heavy, small parts; for
dipping or draining applications, use
expanded or perforated metal designs
Storage bins,
hopper front
0.5-5 4-20 inch long; 4-10 inch wide; 2-
10 inch high
Organize and store small to medium
size items; mount on floor, shelves, or
racks
Modular containers
(plastic)
3-6 Stackable; fit standard racks and
carts
Handle small parts and assemblies;
good for organizing into families or
groupings
Tote boxes 7-14 Often fiberglass; capacities to
3,000 lb.
For high total weight (castings,
stampings, small heavy parts)
Wood boxes 25-65 Equipped with lids; pallet or skid
bases (a 48x30x30 skid container is
$60)
High impact resistance of wood is good
for parts handling; readily repaired;
commonly used for soft goods and
textiles)
Wirebound boxes -- Wooden slats attached to base
(wood, plastic, or metal) bound
with wire
Handling and shipping of implements
assemblies, components; readily built
or repaired in the field
Wire: collapsible Up to
100
High strength/weight ratio; hinged
access gates
Hold large, heavy, or irregular shape
items; high product visibility; compact
storage; maximum stack of 3 or 4
Wire: rigid 140-175 Have corner posts for rigidity (e.g.,
3x3 in. angle)
Heavy duty for high stacking with
order-picking vehicles; loads to 6,000
lb.
Corrugated steel 75-300 Basic unit is a two-piece box
welded to platform base or
corrugated bottom; variety of solid
and perforated lids, stacking legs,
and attachments
Heavy-duty handling (castings,
stampings, forgings); use with tilting
stands and dumping attachments
49
- Wheel, Roller, and Belt Conveyors Cost Estimates (1992)
Type Application Notes Cost Factors Typical Pricing
Skate wheel Convey smooth, lightweight
packages, bags, and cartons by
gravity (manual push); min of 6
wheels under each item; rollers set
low for guidance; easy to relocate
Width, number of wheels/ft,
construction material (steel,
alum., galvanized metal),
special wheel construction
12 in. wide, 10 wheel/ft = $9/ft,
* 90 curve with guard = $120;
24/28 unit = $14/ft, 90 curve
with guard = $175
Gravity
roller
For applications requiring more
uniform conveying surface;
transport tote boxes; cartons,
baskets, and drums; rollers set low
for guidance
Width, roll diameter, shaft size
bearings, roll spacing, frame
construction
Light to medium duty = $11-
25/ft; heavy duty = $35-75/ft **
Powered
(live roller)
Moves items horizontally without
manual assistance; must be a
conveyable container with 3 rollers
touching bottom surface; special
types used for accumulation; either
by zone or along entire line
Width, roller bed construction,
drive method (flat or V-belt;
continuous chain, roll-to-roll
chain, line-shaft belt)
$75-200/ft; belt-driven usually
less costly; roll-to-roll chain
usually at higher end of cost
range
Belt (slider
or roller)
Gives complete support under loose
materials or in containers; move
light/medium-weight loads between
operations and departments; can
pace work and handle unusual
shapes and configurations; belt
operates over slider bed or roller bed
with roller offering higher capacity
Width, bed construction,
raggedness of terminal
machinery, center or end drive;
rough top belt used for incline
or decline; smooth top belt
diverts containers to multiple
locations
A common in-plate type (roller
bed 23 wide between frames
and 9 roll centers) = $45-85/ft;
add about $7/ft for slider-bed
construction
*Supports are extra; normal duty = $15 apiece, heavy duty = $30.
**More detailed cost estimates are shown below.
Roller Width Between Centerline Roller Cost
Diameter,
in.
Load Capacity, lb. Conv. Frames, in. Spacing, in. $/ft
1.37 80 15 1.5
4.5
25
11
2(1.9) 300 21 3
6
25
14.50
2.5 600 42 3 75
8 35
50
- Guideline for Pitch on Gravity Conveyors (1982). Avoid loads over 200 lb.
Item Approximate
Weight (lb.)
Conveyor Pitch (in./10ft)
Barrels -- 5
Baskets -- 5
Boxes, wood 15-25
25-50
50-100
100-250
6.25
5
3.75
3.12
Brick -- 5
Cans (milk)
Empty
Full
6.25
5
Cartons 3-6
6-12
12-25
25-30
8.75
7.5
6.25
5
Crates -- 5-6.25
Drums 150-300 2.5-3.75
Lumber -- 5
Tote pans -- 2.5-5
- Bulk Handling Conveyors Estimated Costs (1992)
Belt Long-distance, often inclined,
transport of bulk solids such as
coal, ash, gravel, fertilizer, or
sand; fabric or rubber belt
typically moving in a troughed
configuration over 3 roll idlers
Five basic cost elements: belt,
idlers, pulleys and terminals,
drive, and structure; additional
accessories include belt cleaner,
walkways, pulley lagging,
gravity takeup, and hood cover
A 15 hp, 24 in. x 100 ft inclined
conveyor is common; basic cost, not
including accessories, around
$15,000
Screw Pushes loose materials forward
in any horizontal direction or
along incline using shaft-
mounted helix revolving in U-
shaped, stationary trough;
adapted for dust-tight operation
in confined spaces
Bulk, material characteristics,
drive power, screw size (6, 9, or
12 in. diameter), type of
construction
10 ft starter section with terminals,
end bearings, inlet and outlet screw,
and trough ranges from $500-1800,
depending on screw size and
construction; cost/foot lower for
additional sections
Pneumatic High-volume transporting of
aerated solids in a clean, dust-
free operation not confined to
straight-line conveying;
operation is positive pressure,
negative pressure(vacuum), or
combination, depending on
number of pickup and delivery
points
Costs directly related to blower
motor hp requirements
Costs/hp drops as blower hp
increases; at 3 hp, cost = $1,500-
2,000/hp; at 150 to 200 hp, cost -
$500-1,000/hp
- Chain, Overhead, In-Floor Tow, and Pallet Conveyors (Approximate Purchase Costs in 1992)
51
Chain Primarily for transporting heavy products using
single or multiple chains; can maintain product in
fixed position over entire flow path; various chain
attachments available for specific conveying jobs
Width and
construction based
on capacity and
load configuration,
special features
Slat Load-supporting slats attached to chain, handles
heavy loads with abrasive surface or loads that
might damage belt
$500-700/ft for handling loads
from 200 to 4,000 lb.; heavier
duty systems available
Roller
flight
Uses rollers instead of slats; for accumulation of
heavy loads and rough service applications
Comparable to slat conveyor
Drag line
(chain on
edge)
Vertical chain pins permit horizontal turns, handles
heavy loads moving through subassembly, etc.;
multiple drivers may be used
$400/ft
Drag line
(chain on
flat)
Cannot negotiate horizontal turns; frequently
imbedded in floor
$300/ft
Overhead Frees floor space for other uses; products are out of
reach and protected from pilferage and damage;
suited for sequential processing operations
Trolley Series of trolleys supported from overhead track
and connected by endless, motor-driven chain, or
Type of track
(enclosed, 1 beam,
Chain installed
No. Cost, $/ft
manually pushed, carriers suspended from
individual trolleys; for single or multi-plane
conveying; trolleys are programmable
patented), cable or
chain, type of drive
(caterpillar,
sprocket), take-ups
228 40-60
348 90
458 125
678 175
Power and
free
Similar to trolley conveyor but load carriers are
suspended from 2
nd
set of trolleys running on an
Need for
components,
Chain installed
No. Cost, $/ft
independent or free track; carriers can be
disengaged from chain and accumulated or
switched onto spurs
switches,
escapements, steel,
controls, 458 types
of chain, 678
guards
228 175
348 225
458 375
678 500-600
Monorail Trolley rides on single overhead rail; individual
load carried on one or more trolleys; can use hoists
to provide crane operation; trolley is programmable
Manual or powered
operation, type of
overhead track, type
of hoists if used,
number of switches,
spurs, carriers
In-floor tow Power-driven chain traveling in subfloor trench
propels load-carrying a wheeled carts along straight
runs or combinations of main lines and spurs;
various mechanical, proximity, or remote methods
or programming available; frees floor space when
not in use
Complexity of path,
type of
programming, new
or existing building,
speed requirements
$75/ft without spurs; bumpoff
(non-powered) spur costs
about $2,300
Pallet or
unit load
Similar in design to package roller or chain
conveyors, but capable of handling heavy-duty
construction throughout
Load-handling rate
and number of
directional changes
in system
Basic conveyor for 2,000 lb.
loads = $300/ft; direction
change =$3,500; transfer =
$3,500; receiving point =
$3,500; extra drive = $2,000
52
PART II. CONVEYOR MODELS
From an engineering point of view, materials handling is defined as the art and science involved in
the moving, packaging and storing of substances in any form. A materials handling system is defined as a
series of related equipment elements or devices designed to work in concert or in sequence to accomplish
the movement, storage, and control of materials in an operating environment and with designated materials.
We will consider a deterministic model for a towline or trolley conveyor. Kwo developed the
following principles for the analysis of closed irreversible conveyors:
- Uniformity principle (materials uniformly distributed over conveyor)
- Capacity principle (carrying capacity at least equal to throughput requirement)
- Speed principle (Carriers per unit time within allowable range)
Figure 12.13 shows the conveyor layout considered by Muth. There are loading or unloading
stations numbered in order opposite to the direction in which the conveyor moves. There are equally-
spaced carriers around the conveyor. When the conveyor reaches the steady-state condition the total
amount of material loaded is equal to the total amount of material unloaded. The following notation is
used:
{t
n
} sequence of points in time at which carrier n passes station 1 (reference station)
f
i
(n) amount of material loaded on carrier n as it passes station i
H
i
(n) steady-state amount of material in carrier n immediately after passing station i
Remarks:
Since it is assumed that the conveyor is used over an infinite period of time, the sequences {f
i
(n)}
are assumed to be periodic. The period is the number of carriers in the sequence. Also, the total amount of
material loaded must be equal to the total amount unloaded.
- f
i
(n) = f
i
(n+p), where p is the period of the sequence
- f
i
(n) is positive when loading and negative when unloading
- _
n
_
i
f
i
(n) = 0 (here n=1,...,p and i=1,...,s)
- F
1
(n) = f
1
(n) + f
2
(n) + ... + f
s
(n)
Muth's Results:
- k/p cannot be an integer for steady-state operation
- r = k mod p, r/p must be a proper fraction for sequences {F
1
(n)} to be accommodated
- It is desirable for p to be a prime number
- Material balance equation: H
1
(n) = H
1
(n-r) + F
1
(n)
Approach to find the values of H
i
:
- Let H
1
*(1) = 0 and use H
1
*(n) = H
1
*(n-r) + F
1
(n), n = 1+r, 1+2r, ..., p, p+r; r, 2r, ..., p-1
- Given H
1
*(n), find H
i+1
*(n) = H
i
*(n)-f
i
(n), i = 1,2, ...,s-1
- From sequences {H
1
*(n)},{H
2
*(n)}, ..., {H
s
*(n)}, find c = minimum of H
i
*(n) over i and n
- Desired solution: H
i
(n) = H
i
*(n)-c
- Required capacity: B = maximum of H
i
(n) over i and n
53
Example
A summary of the results for Example 12.30 is shown as follows. You can verify that this example
corresponds to a situation involving a single loading station and a single unloading station, as depicted in
Figure 12.14 in the textbook. The conveyor has nine equally-spaced carriers.
s = 2, k = 9, p = 7, r = 9 mod 7 =2
Station 1 {1, 1, 2, 2, 2, 1, 1} {f1(n)}
Station 2 {0, 0, 0, 0, 0, -5, -5} {f2(n)}
{1, 1, 2, 2, 2, -4, -4} {F1(n)}
H1
*
(n) = H1
*
(n-r) + F1(n)
H1
*
(1) = 0
H1
*
(3) = 0 + 2 = 2
H1
*
(5) = 2 + 2 = 4
H1
*
(7) = 4 - 4 = 0
H1
*
(9) = 0 + 1 = 1
H1
*
(2) = H1
*
(9) = 1
H1
*
(4) = 1 + 2 = 3
H1
*
(6) = 3 - 4 = -1
{ H1
*
(n)} = {0, 1, 2, 3, 4, -1, 0}
H2
*
(n) = H1
*
(n) - f1(n)
{H2
*
(n)} = {-1, 0, 0, 1, 2, -2 , -1}
C = -2
Hi(n) = Hi
*
(n) - C
{ H1(n)} = {2, 3, 4, 5, 6 , 1, 2}
{ H2(n)} = {1, 2, 2, 3, 4, 0, 1}
B = 6
As a result of the analysis summarized above, the conveyor needs to have carriers with a minimum capacity
of 6 units of product. The amount of material on the carriers and the carrier capacity in turn obviously
depend on the number of carriers, k.
Analysis of Carrier No. 6
54
In the following figures we show carrier No. 6 immediately after it has passed station 1 on the left
and station 2 on the right. It can be verified that the labels for this carrier are 6, 15, 24, 33, 42, 51, 60, and
69. Note that the difference between the last and first labels is equal to 69-6 = 63 = (9)(7) = kp.
1
1
1
1
2
2
2
2
1
2
f
1
(6)=1 f
2
(15)=0
f
1
(15)=1
f
2
(24)=0
f
1
(24)=2
f
2
(33)=0
f
1
(33)=2
f
2
(42)= -5
f
1
(42)=1
f
2
(51)=0
55
Exercises
1. Summarize the meaning of each material handling principle and indicate how it can be used to enhance
the overall value of a layout.
2. Discuss advantages and disadvantages of conveyors, cranes, and trucks.
3. Sketch each piece of equipment discussed in this chapter. Indicate the basic purpose of each.
4. Provide a list of guidelines for selecting material handling equipment.
5. Describe a typical conveyor control system.
1
1 2
2
2
1
f
1
(51)=1
f
2
(60)=0
f
1
(60)=2
f
2
(69)= -5
1
2
2
1
56
6. What are the most widely used conveyor accessories? Provide a short description of each.
7. Examples 12.31, page 594, textbook.
8. Consider a closed conveyor with 16 carriers and 3 stations. The first station has the sequence {4, 4, 0}.
The second station has the sequence {-3, -1, 0}. The third station has the sequence {0, -2, -2}. Find the
capacity of the conveyor.
9. Consider a conveyor with 4 carriers and two stations. The first station has the sequence {0 0 1}. The
second station has the sequence {-1 0 0}. Find the capacity of the conveyor.
10. In Example 12.30 consider k = 8, 9, 10, 11, 12, 13. Find the steady-state amount of product in each
carrier and the carrier capacity for each value of k. See answers in Table 12.10, textbook, page 593.
11. In the example given at the end of this chapter, show the loading and unloading sequence for carrier No.
9.
12. A trolley conveyor is used to transport parts among four production stations. There are 31 carriers
equally spaced around the conveyor, with 10-ft separation between carriers. The material flow sequences
for the workstations are as follows: {f
1
(n)} = {5,0,0}, {f
2
(n)} = {0,-3,0}, {f
3
(n)} = {0,0,4} and {f
4
(n)} =
{4,0,0}. (a) Determine the minimal capacity of each carrier. (b) Find the final label of carrier 5 after it
completes an entire cycle of flow adjustments (putting units in or taking them out), as it goes by the
loading/unloading stations starting with the carrier empty. (c) Do a simulation analysis (by hand) of carrier
3. Verify that the steady-state results obtained are exactly the same as those obtained analytically.
13. The following input data and output results (steady-state) are known for a closed conveyor having nine
equally-space carriers and two stations.
Input Data:
Station 1 {1,1,2,2,2,1,1}
Station 2 {0,0,0,0,0,-5,-5}
Output Results:
{ H
1
(n)} = {2,3,4,5,6,1,2}
{ H
2
(n)} = {1,2,2,3,4,0,1}
Now consider carrier 5. (a) What is the label of this carrier and what is the action taking place at station 1
when the carrier arrives at station 1 for the fourth time? (b) What is its steady-state content (units of
product) immediately after it goes by station 1 four times? (c) What is the label of this carrier when it
arrives at station 1 after completing an entire cycle of loading and unloading actions? Assume the cycle
starts when carrier 5 arrives at station 1 with four units of product.
57
8. PERSONNEL REQUIREMENTS
In this chapter we study the requirements to be included in a plan designed to serve the personnel
of an organization in such a way that basic needs, practical considerations, and morale related aspects are
integrated. In particular, the text examines the following items:
- Employee parking
- Locker rooms
- Restrooms
- Food services
- Health services
- Barrier-Free Compliance
Exercises
1. Reading Assignment: Chapter 5. Summarize the most important information presented in this chapter.
2. Example 5.1 (see Figure 5.3 ).
3. Example 5.2.
58
9. OFFICE LAYOUT PLANNING
Offices differ from factories in at least three ways: the product, the physical environment, and the
social environment. An office produces information (paperwork, computer input/output, electronic files,
and oral communication). Office layout criteria are minimization of communication cost and maximization
of employee productivity. Some recommended criteria are [Administrative Management, October 1981]:
- Suitability: operational effectiveness
- Flexibility: possibility of efficient change and growth
- Habitability: features and facilities to enhance efficiency
- Advancement of the administrative profession: state-of-the-art office planning and design.
When evaluating the degree of suitability or operational effectiveness, we focus on space
allocations, work and traffic patters, accommodation of required equipment, and energy conservation. The
degree of flexibility should be enough to prepare the designers to face the challenge of future changes and
expansions. Among habitability features, the following are most important: lighting, sound conditions,
climate conditions, decor, and various employee facilities.
The following material is adapted from the article "Work Rooms" by A. K. Leopold, USAir
Magazine, August 1995, pp. 58-62. New trends in office space design combine style, functionality and
technology. A number of companies, from the West Coast's Apple Computer to Pittsburgh's Aluminum
Company of America, are redesigning office facilities in a way that promotes performance by integrating
teamwork and telecommunications. In 1994 the Chiat/Day Company, one of the largest advertising
companies in the US, eliminated permanent offices in L.A. and N.Y. in favor of a non-office look vividly
enhanced by the use of screaming primary colors. Their employees check out laptops and come in for
meetings as needed.
According to Dr. F. Becker, director of Cornell University's International Workplace Studies
Program and a consultant for Fortune 500 companies on developing effective workplace strategies, the
fundamental idea is that people should work under the conditions that they can be most efficient. Location
and time should be of secondary importance. So, he asks, "Why not create an office where the probability
of bumping into people for the exchange of ideas is increased?" New work environments often require less
space and promote high performance.
Types Of Office Arrangements
- Conventional office
- Landscape office
- Open plan office
Conventional Arrangement
The defining concept for this type of office layout is to separate the higher-rank individuals from
the rest of the personnel. The characteristics of the conventional arrangement include: private offices for
higher ranks, no partitions between desks, no plants, straight lines, and desks only. With the
implementation of the microcomputer, repetitive clerical work now is done by microcomputers instead of
people, so that the size of the central space has shrunk to hold tens of people instead of hundreds.
Landscape Arrangement
The key concept is summarized by the philosophy that the "officers must be down in with troops."
In this type of layout there are no permanent interior walls, although a special privacy area is generally
available. The characteristics of the landscape arrangement (introduced in 1958) include: no private
offices, some partitions due to furniture, plants, no straight lines, desks (arranged at random), plus some
59
storage units. Straightforward aisles and corridors are replaced by crooked paths. Desks are arranged in
order to minimize communication cost.
Open-Plan Arrangement
The open plan arrangement, the action office, was introduced in 1964. Its key concept is that
each workstation has its own specific needs. The individualized workstation tends to have a systematic
arrangement rather than a rectangular one (as in the conventional layout). Visual variety is emphasized with
color-coordinated furniture replacing the proverbial battleship gray and industrial green. The characteristics
of the open-plan layout include: a few private offices, extensive use of partitions, plants, straight and curved
lines, work surfaces, and storage units in a wide variety of sizes and shapes.
The open-plan layout is particularly effective when integrated with modular furniture. In this case,
it is possible to accommodate efficiently more individuals, the arrangement cost is reduced, as well as the
energy cost, and employee productivity can be enhanced.
Workstation Linking
Typical workstation linkages are zigzag, spine, pinwheel, and side-to-side/back-to-back. In the
search for the competitive edge, companies are switching from enclosed offices to open-plan offices formed
by using interlocking panels that can support work surfaces as well as storage facilities. Technology has
introduced new gadgets to the workplace, such as a cordless phone that is also a clock radio, a six-inch
electronic diary that holds 2,000 names, transfers them to and from PCs, and includes a foreign-currency
converter. More workplaces now have a touch of home, with carved wooden chair rails, period rugs,
mellow old floorboards, even fireplaces. Ergonomics has emerged as more than just a buzzword.
Today people also want their offices to say they have a life outside of work. Open plan and
modular furniture have a number of important advantages over conventional offices: (1) more people in the
same area; (2) less arrangement cost; (3) less energy cost; (4) possibly more productivity.
Sketches of Office Arrangements
The following figures show the salient characteristics of the following types of office layouts:
- Conventional office
- Landscape office
- Open plan office (the "action office")
Typical patterns for linking workstations are also shown: (a) spine, (b) zig-zag, (c) pinwheel, and (d) side-
to-side or back-to-back.
60
61
Special Areas
- Conference, meeting, training rooms
- Shop offices
- Reception area
The planning of a conference room includes several considerations, such as room use, dimensions,
equipment needed, furniture, and illumination requirements.
Shop offices can be prefabricated, with windows that allow people in offices to monitor activity on
the factory floor. These offices can also be used for storage.
The reception area should be planned taking into consideration the following factors: security
needs, number of visitors that need to be accommodated, telephone requirement, access to toilet, and
furniture requirements.
62
10. LOCATION MODELS IN FACILITY PLANNING
In this chapter we will study the following three types of location models: single-facility, location-
allocation, and quadratic assignment models. In the first class of models, it is desired to find the location of
a new facility given its interation (number of trips) with a group of existing facilities. In the second class of
models, it is desired to determine the number and location of new facilities, as well as the allocation of the
existing facilities among the new ones, given the number of trips between each existing facility and one of
the new facilities. It is assumed that each existing facility is allocated (assigned) to exactly one new
facility. In the third class of models, several facilities are located given the interation among the facilities
(number of trips) and the distance between the potential sites, subject to two types of constraints; these
constraints establish that each facility must be located exactly once, and each site must accommodate
exactly one facility. Details on the development and application of each model are given next.
Single-Facility Location Model
The following notation will be used:
X = (x, y) : location of new facility
P
i
= (a
i
, b
i
): current location of facility i
d(X, P
i
) = distance between new facility and facility i
Three types of distance can be considered: (a) rectilinear or rectangular; (b) Euclidean (straight
line); (c) actual distance (usually approximated by rectilinear or Euclidean or a combination of both). In
most of the applications rectilinear distances are the most appropriate. Two typical measures of
effectiveness are: (a) minimization of sum of weighted distances traveled from new facility to each other
existing facility; (b) minimization of maximal distance between the new facility and any existing facility.
These objective functions can be expressed as:
- minisum: Minimize f(X) =
i
m
=
_
1
w
i
d(X, P
i
)
- minimax: Minimize f(X) = max{d(X, P
1
), d(X, P
2
), ..., d(X, P
m
)}
A. Minisum Location Model
If rectilinear distances are used, the distance between two points is equal to the sum of the absolute
values of the difference between their coordinates: d(X,Pi) = | x - a
i
| + | y - b
i
|. Thus, the minimum
objective function can be rewritten as:
Minimize f(X) =
i
m
=
_
1
w
i
| x - a
i
|+
i
m
=
_
1
w
i
| y - b
i
|
Solution Procedure
- This objective function is separable (x and y can be obtained separately)
- The optimal value of x = x* equals one of a
i
values
- The a
i
values are scanned in increasing order to compute
j
i
=
_
1
w
j
63
- The value x* is the first a
i
at which the cumulative weight reaches or exceeds
i
m
=
_
1
w
i
/2
- The optimal value of y = y* equals one of the b
i
values
- The b
i
j
i
=
_
1
w
j
- The y* is the first b
i
i
m
=
_
1
w
i
/2
Proof
The minimization problem for x can be formulated as minimizing
i
m
=
_
1
w
i
| x - a
i
|. This is
equivalent to the linear program given below:
Minimize
i
m
=
_
1
w
i
(r
i
+s
i
)
x - r
i
+ s
i
= a
i
, i = 1,2,...,m
r
i
, s
i
> 0, i = 1,2,...,m
In order to see why this is an equivalent model, let us reason as follows. The quantity inside the
absolute value | x - a
i
| can be either negative or positive. Therefore, it can be expressed as the difference
between two non-negative variables (unknown at this time). That is, x - a
i
= r
i
- s
i
. Now, suppose that r
i
and
s
i
are such that if one is positive then the other one is zero (we will prove this later). As a result, we have
x - a
i
= r
i
if r
i
> 0 and s
i
= 0, or
x - a
i
= -s
i
if r
i
= 0 and s
i
>0.
Moreover,
i
m
=
_
1
w
i
| x - a
i
| =
i
m
=
_
1
w
i
| r
i
| =
i
m
=
_
1
w
i
r
i
if r
i
> 0 and s
i
= 0
i
m
=
_
1
w
i
| x - a
i
| =
i
m
=
_
1
w
i
| -s
i
| =
i
m
=
_
1
w
i
s
i
if r
i
= 0 and s
i
>0
As a result of our analysis, we conclude that minimizing
i
m
=
_
1
w
i
| x - a
i
| is equivalent to
minimizing
i
m
=
_
1
w
i
( r
i
+ s
i
) under the constraints x - r
i
+ s
i
= a
i
, i = 1,2,...,m; r
i
, s
i
> 0, i = 1,2,...,m. In
order to see why the two variables r
i
and s
i
cannot be simultaneously positive in any basic solution, let us
use the well-known tableau format of the simplex method, for the constraints of the linear program:
64
x r
1
S
1
r
2
s
2
r
i
S
i
r
m
s
m
RHS
1 -1 +1 0 0
0 0
0 0 a
1
1 0 0 -1 +1
0 0
0 0 a
2

1 0 0 0 0
-1 +1
0 0 a
i

1 0 0 0 0
0 0
-1 +1 a
m
From the above table, we can see that the column associated with r
i
is the negative of the column
associated with s
i
. As a result, both variables cannot be positive in the same basic solution, since in such a
case the basis matrix would have its determinant equal to zero. Let us consider again the primal program:
Minimize
i
m
=
_
1
w
i
(r
i
+s
i
)
x - r
i
+ s
i
= a
i
, i = 1,2,...,m
r
i
, s
i
> 0, i = 1,2,...,m
Let z
i
be the dual variable associated with the i
th
constraint. Therefore, the dual model
corresponding to the above primal model is
Maximize a
1
z
1
+ a
2
z
2
+ +a
i
z
i
+ + a
m
z
m
subject to:
z
1
+ z
2
+ +z
i
+ +z
m
= 0
-z
i
s w
i
, i = 1,2,...,m
+z
i
s w
i
, i = 1,2,...,m
Note that the last two groups of constraints can be written as -w
i
s z
i
and z
i
s w
i
. This is
equivalent to -w
i
s z
i
s w
i
, or more simply as | z
i
| s w
i
. In summary, the dual model can be written as
Maximize
i
m
=
_
1
a
i
z
i
i
m
=
_
1
z
i
= 0
| z
i
| s w
i
, i = 1,2,...,m
Now we note that
i
m
=
_
1
a
i
z
i
=
i
m
=
_
1
a
i
z
i
- x(0) =
i
m
=
_
1
a
i
z
i
- x
i
m
=
_
1
z
i
=
i
m
=
_
1
z
i
(a
i
-x) s
i
m
=
_
1
| z
i
| | x - a
i
|. Since
| z
i
| s w
i
we conclude that
i
m
=
_
1
a
i
z
i
s
i
m
=
_
1
w
i
| x - a
i
|. Thus, the value of the objective function for any
feasible dual solution should be bounded by any feasible value of the objective function of the original
model. At optimality,
i
m
=
_
1
a
i
z
i
* =
i
m
=
_
1
w
i
| x* - a
i
|.
65
Proceeding with this analysis, let us arrange the a
i
values in increasing order of magnitude:
a
(1)
< a
(2)
< ... < a
(m)
. Now let us define:
(a) t such that: (1)
i
t
=
_
1
1
w
(i)
<
i t
m
=
_
w
(i)
; and (2)
i
t
=
_
1
w
(i)
>
i t
m
= +
_
1
w
(i)
(b) z*
(i)
= -w
(i)
for i = 1, 2, ..., t-1
(c) z*
(i)
= w
(i)
for i = t+1, t+2, ..., m
(d) z*
(t)
= -
i t
m
=
_
z*
(i)
(e) x* = a
(t)
The above solution is indeed an optimal solution as verified below:
i
m
=
_
1
a
(i)
z*
(i)
=
i
m
=
_
1
a
(i)
z*
(i)
- x*(0) =
i
m
=
_
1
z*
(i)
(a
(i)
- a
(t)
)
=
i
t
=
_
1
1
z*
(i)
(a
(i)
- a
(t)
) +
i t
m
= +
_
1
z*
(i)
(a
(i)
- a
(t)
)
= -
i
t
=
_
1
1
w
(i)
(a
(i)
- a
(t)
) +
i t
m
= +
_
1
w
(i)
(a
(i)
- a
(t)
)
=
i
m
=
_
1
w
i
| x* - a
i
| (optimal solution)
The two conditions given in (a) above actually result in a value t such that
i
t
=
_
1
w
(i)
reaches or
immediately exceeds
i
m
=
_
1
w
i
/2. Therefore, the optimal value of the x-coordinate can be found as the value
x* that corresponds to a cumulative weight equal to
i
m
=
_
1
w
i
/2. A similar analysis can be conducted to find y
= y*.
Example
Machines 1, 2, 3, and 4 are located at the points (4,2), (8,5), (11,8) and (13,2), respectively. There are 6, 9,
4, and 2 trips per week, repectively, between the machines and a new facility. Find the location of the new
facility.
(a) Finding x*:
- a
(1)
= 4; a
(2)
= a
2
= 8, a
(3)
= a
3
= 11, a
(4)
= a
4
= 13
- w
(1)
= w
(1)
= 6; w
(2)
= w
2
= 9, w
(3)
= w
3
= 4, w
(4)
= w
4
= 2
-
i
m
=
_
1
w
i
/2= 21/2 = 10.5
- w
(1)
= 6 <
i
m
=
_
1
w
i
/2= 10.5
66
- w
(1)
+ w
(2)
= 15 >
i
m
=
_
1
w
i
/2= 10.5
- Therefore, x* = a
(2)
= a
2
= 8.
(b) Finding y*:
- b
(1)
= b
1
= 2; b
(2)
= b
4
= 2, b
(3)
= b
2
= 5, b
(4)
= b
3
= 8
- w
(1)
= w
1
= 6; w
(2)
= w
4
= 2, w
(3)
= w
2
= 9, w
(4)
= w
3
= 4
-
i
m
=
_
1
w
i
/2= 21/2 = 10.5
- w
(1)
= 6 <
i
m
=
_
1
w
i
/2= 10.5
- w
(1)
+ w
(2)
= 8 <
i
m
=
_
1
w
i
/2= 10.5
- w
(1)
+ w
(2)
+ w
(3)
= 17 >
i
m
=
_
1
w
i
/2= 10.5
- Therefore, y* = b
(3)
= b
3
= 5.
Graphical Approach
- Horizontal axis: mark the values of x equal to 0 and all a(i) values for i = 1, 2, ..., m.
- Vertical axis: sum of weights to the right of each marked value of x.
- Starting at the left with
i
m
=
_
1
w
i
, join horizontal and vertical linear segments with the length
of each vertical displacement equal to the weight at each point.
- Find value x = x* in the diagram that corresponds to a cumulative weight of
i
m
=
_
1
w
i
/2.
- A similar analysis is carried out to find y = y*.
Example
Machines 1, 2, 3, and 4 are located at the points (4,2), (8,5), (11,8) and (13,2), respectively. There are 6, 9,
4, and 2 trips per week, repectively, between the machines and a new facility. (a) Draw cumulative weight
and resulting force diagrams. (b) Determine the optimal location of the new facility, using the minisum
model with rectilinear distances.
Contours for Minisum Model
Contours are important because they provide meaningful information on the shape of the surface of
the objective function and allow the selection of attractive feasible locations when an optimal location is not
possible. For this procedure we need the resultant weight diagram for both x and y. We get this diagram
from the previous cumulative weight diagram by changing the meaning of the vertical axis. Instead of
being defined as the weight to the right of x it is redefined as the cumulative weight (in a force analogy).
67
The resultant weight is defined as the sum of weights to the left of a point (a value of a
i
) minus the sum of
weights at the point or to its right.
- Horizontal axis: mark a
i
values for x.
- Vertical axis: mark b
i
values for y.
- Generate a rectangular grid using marked points on each axis.
- Find the resultant weight (force) for each interval in both axes.
- For each cell of the grid compute S
ij
= -M
i
/N
j
, where M
i
is the resultant weight (force) for the x
axis and N
j
the resultant weight (force) for the y axis.
- Choose any point in any cell, draw a linear segment having slope equal to S
ij
, and join it to
another segment in the next cell, continuing until a convex polygon is obtained. This is a
contour with all points having the same value of the objective function.
Example
In the previous example, draw a contour through the point (4,5).
Extension to Rectangular Areas
Now let us consider a situation where an area is associated with some facilities. These facilities
may be referred to as area facilities. All others may be referred to as point facilities. Previously the weight
(usually number of trips) assigned to the distance to any existing facility was associated with one point.
Now it is associated with an area. A reasonable assumption in this case is to consider a uniform distribution
of the weight over the area. It is also reasonable to assume that an area facility has a rectangular area or a
combination of rectangular areas.
In the event that there is one or more point facilities inside the same area facility, the area of the
facility is divided into smaller rectangular areas as determined by vertical lines drawn through the point
facilities. Additionally, the total weight of the area facility is proportionally divided among the smaller
rectangular areas. The extension of the graphical procedure used to draw a cumulative weight curve for the
minisum model with rectilinear distances can be achieved by means of the following rules:
- On the horizontal axis mark the values of x corresponding to all point facilities, as well to the
vertical sides of each rectangle (representing either an area facility or a rectangular portion of an
area facility that contains point facilities). Now scan these marks from left to right.
- On the vertical axis assign the value
_
=
m
i
i
w
1
+
_
=
p
i
i
v
1
to the first mark on the horizontal axis. Here it
is assumed that there are m point facilities and p area facilities. Moreover, the weight of point
facility i is equal to w
i
and that of area facility i is equal to v
i.
Proceed through all marks on the
horizontal axis adjusting the cumulative weight in the following fashion: (a) For an interval
between two adjacent point facilities the cumulative weight curve has a horizontal segment. (b)
At the location of a point facility the weight curve has a vertical drop equal to the weight of the
point facility. (c) For an interval including a rectangle, the curve decreases linearly. (d) The size
of the drop is equal to the weight of the rectangle.
- Find value x = x* in the diagram that corresponds to a cumulative weight of (
_
=
m
i
i
w
1
+
_
=
p
i
i
v
1
)/2.
- A similar analysis is carried out to find y = y*.
Example
Consider three point facilities and one area facility with locations and number of trips to a new facility
as shown in the following diagram:
68
B. Minimax Location Model
The formulation to be considered is: Minimize f(X) = max{d(X,P
1
), d(X,P
2
), ..., d(X,P
m
)}. If we
now assume that d(X,P
i
) = | x - a
i
| + | y - b
i
|, then the model becomes:
Minimize f(X) = max{| x - a
1
| + | y - b
1
|, | x - a
2
| + | y - b
2
|,...,| x - a
m
| + | y - b
m
|}
Let us introduce the following notation: c
1
= min (a
i
+b
i
), c
2
= max (a
i
+b
i
), c
3
= min (-a
i
+b
i
), c
4
= max
(-a
i
+b
i
), and c
5
= max (c
2
-c
1
, c
4
-c
3
). Optimum solutions are shown to be all points on the linear segment
w
1
=
4
w
1
=
6
w
1
=
2
v
1
=10
69
connecting the points (x,y) =
1
2
(c
1
-c
3
, c
1
+c
3
+c
5
) and (x,y) =
1
2
( c
2
-c
4
, c
2
+c
4
-c
5
). At any optimal point,
the maximum distance is equal to c
5
/2.
Proof
The optimization problem is equivalent to minimizing f(X) = max { | x - a
i
| + | y - b
i
|} over all
possible = 1, 2, ..., m. This in turn is equivalent to the following LP model:
Minimize z
subject to
| x - a
i
| + | y - b
i
| s z for = 1,2, ..., m
Now, let us rewrite the constraints as -z + | y - b
i
| s x - a
i
s z - | y - b
i
|. Next, it is
straightforward to verify that these constraints are equivalent to the following: (1) x+y-z s a
i
+b
i
. (2)
x+y+z > a
i
+b
i
. (3) -x+y-z s -a
i
+b
i
. (4) -x+y+z > a
i
+b
i
. Using the notation previously introduced, the
equivalent model can be formulated as indicated below:
Minimize z
subject to
(1) x+y-z s c
1
(2) x+y+z >c
2
(3) -x+y-z sc
3
(4) -x+y+z >c
4
From (1) and (2) we can conclude that z >
1
2
(c
2
- c
1
). From (3) and (4) we conclude that z >
1
2
(c
4
- c
3
). Thus, z >
1
2
c
5
. Now it is straightforward to verify that the points (x,y) =
1
2
(c
1
-c
3
,
c
1
+c
3
+c
5
) and (x,y) =
1
2
(c
2
-c
4
, c
2
+c
4
-c
5
) satisfy the constraints and have z =
1
2
c
5
. Therefore, these are
optimal (basic) solutions. Furthermore, all points on the linear segment joining these points are also
optimal (non-basic) solutions.
Example
1. An emergency service unit is needed to serve the following subdivisions in a city:
Subdivision x- coordinate y- coordinate
A 4 3
B 5 11
C 13 13
D 10 6
E 4 6
F 10 10
G 14 2
70
a. Propose a model (criterion) to solve this problem.
b. Determine the optimal location.
Solution
a. The single-facility MINIMAX model is the most appropriate for this application, since it is desirable
to locate the emergency facility in such a way that the longest possible distance traveled in an
emergency will be minimized.
b. The optimal location can be determined as follows:
c
1
= min {4+3, 5+11, 13+13, 10+6, 4+6, 10+10, 14+2} = 7
c2 = max {4+3, 5+11, 13+13, 10+6, 4+6, 10+10, 14+2} = 26
c3 = min {-4+3, -5+11, -13+13, -10+6, -4+6, -10+10, -14+2} = -12
c4 = max {-4+3, -5+11, -13+13, -10+6, -4+6, -10+10, -14+2} = 6
c5 = max {26-7, 6-12} = 19
Therefore, the solution lies on the linear segment jopining the points: (x*, y*) = (7+12,7-12+19)/2 = (9.5,7)
and (x*, y*) = (10, 6.5).
Exercise: Example 12.3, pages 539-540.
Contours for Minimax Model
In order to find a contour for a specified value of the objective function, z, we can proceed as
follows. Inequalities (1)-(4) given above can be re-written as:
(5) x+y s c
1
+z
(6) x+y > c
2
-z
(7) -x+y sc
3
+z
(8) -x+y > c
4
-z
Example
In the prceding example find the equations for the borderlines of the contour for z = 12.
Solution
A contour for a specified value of z is the boundary of the region defined by inequalities (5)-(8).
In the current numerical illustration, we will find a contour corresponding to z = 12. In this case,
inequalities (5)-(8) can be formulated as
x+y s 19
x+y > 14
-x+y s 0
-x+y > -6
The following straight line equations are the borderlines of the desired contour:
71
x + y = 19
x + y = 14
-x + y = 0
-x + y = -6
Exercise: Plot the contour along with the optimal solution.
Location-Allocation Problems
Here we are interested in determining the number and location of new facilities, as well as the
allocation of item movement between the new and existing facilities. A common example is the location of
distribution centers that receive products from production facilities and distribute products to retail or
wholesale outlets. To formulate a general mathematical model, the following notation will be used:
= total cost per unit time
n = number of new facilities
X
j
= (x
j
,y
j
), coordinate location of new facility j
P
i
= (a
i
,b
i
), coordinate location of existing facility i
w
ij
= cost per unit time per unit distance if new facility j interacts with existing facility i
z
ji
= 1, if new facility j interacts with existing facility i; z
ij
= 0, otherwise
g(n) = cost per unit time of providing n new facilities
Mathematical Model
Minimize =
j
n
=
_
1 i
m
=
_
1
z
ji
w
ji
d(X
j
,P
i
) + g(n)
j
n
=
_
1
z
ji
, i=1,...,m
n = 1,2, ..., m
The decision variables are n, z
ij
, and X
j
. Each existing facility interacts with only one new facility.
Since no capacity conditions are specified, we are assuming that a new facility is able to handle all
interchanges with existing facilities. Normally, we can assume that w
1i
=w
2i
=...=w
ni
since identical new
facilities are to be located.
Solution Procedure
1. Find number of possible combinations for a given value of n and m,
_
=

=
1
0
)! ( !
) ( ) 1 (
) , (
n
k
m k
k n k
k n
m n S
2. For each combination indicate which existing facilities are assigned to each new facility.
3. Use the single-facility procedure to locate each new facility (using rectilinear distances).
4. For each group (one new facility and its associated existing facilities) compute the trip costs.
5. Find total cost for all groups (trip cost plus cost of owning and operating the new facilities).
6. Scan all combinations and eliminate infeasible ones (those with overlapping service areas).
7. Find the minimal-cost feasible combinations for the value of n being considered,
n
.
8. Repeat the above procedure for n = 1, 2, ..., m, and select the global optimal from
1
,
2
, ...,
m
.
Example
72
Five special-purpose machines (m = 5) are located in a plant at points (0,0), (0,10), (20,0), (40,10),
and (10,10). These machines require maintenance at expected frequencies of 6, 10, 11, 12, and 5 times per
month, respectively. All maintenance is performed at a maintenance center. The cost of transporting the
machines to and from the maintenance center is $10 per unit of distance. The monthly operation cost for a
maintenance center is $6,000. Rectilinear travel is assumed.
As an illustration, assume n = 2 maintenance facilities. Here S(n,m) = S(2,5) = 15 allocations.
Let us now consider the allocation of machines 3 and 4 to maintenance facility 1, and machines 1, 2, and 5
to maintenance facility 2. Using the single-facility location procedure for each facility, we can determine
the following results:
Facility 1: x
1
* = a
4
= 40, and y
1
* = b
4
= 10. In this case, the first new facility and machine 4
share the same location. Thus, the weighted distance traveled is equal to 11(20+10) + 12(0+0) = 330.
Considering round-trips, the total distance becomes 660. Since each unit of distance costs $10, the total
cost associated with transporting machine 3 to the repair facility is $6,600. Including the cost of owning
and running the maintenance facility, the total cost per month is found to be equal to $12,600.
Facility 2: x
2
* = a
2
= 0, and y
2
* = b
2
= 10. In this case, the second new facility shares its
location with machine 2. Similarly, the total weighted distance is computed as 6(10) + 5(10) = 110, or 220
for round-trips. Therefore, the total cost is $2,200 + $6,000 = $8,200.
From both results shown above, the total cost for the allocation being considered is $12,600 +
$8,200 = $20,800. To find the optimal solution all possible allocations must be explored and the one
associated with the minimum cost is chosen.
Exercise: check the allocation of machine 4 to facility 1 and machines 1, 2, 3, and 5 to facility 2. Verify
that the total cost (minimal in this case) is $20,400.
Exercise: assume that n=3 and verify that the cost is equal to $20,200 (optimal) if machines 3 and 4 are
assigned to a new facility each, and machines 1,2, and 5 are assigned all to a third facility.
Quadratic Assignment Problem
There is a set of n locations in which n facilities must be located. The cost of assigning new
facility j to location k when new facility h is assigned to location l is c
jkhl
. The quadratic assignment
model minimizes the total cost subject to two types of constraints: (a) each new facility must have exactly
one location; (b) each location has exactly one new facility. The mathematical model is formulated below:
Minimize
j
n
=
_
1 k
n
=
_
1 h
n
=
_
1 l
n
=
_
1
c
jhkl
x
jk
x
hl
j
n
=
_
1
x
jk = 1
, k = 1,2,...,n
k
n
=
_
1
x
jk = 1
, j = 1,2,...,n
x
jk
= 0,1, for all j and all k
As an illustration, suppose there are n locations and n plants to be constructed. The unit cost of
shipping from location k to location l is d
kl
. The volume required to be shipped from plant j to plant h is
v
j h
. If plant j is assigned to location k and plant h to location l, the shipping cost is v
jh
d
kl
+ v
hj
d
lk
. Now,
let us suppose that there are three locations available for three plants. In this case (n = 3), the quadratic
assignment model becomes:
73
Minimize
k l k l , , = =
_
1
3
j h j h , , = =
_
1
3
d
kl
v
jh
x
jk
x
hl
Subject to:
x
11
+x
21
+x
31
= 1, for location 1
x
12
+x
22
+x
32
= 1, for location 2
x
13
+x
23
+x
33
= 1, for location 3
x
11
+x
12
+x
13
= 1, for plant 1
x
21
+x
22
+x
23
= 1, for plant 2
x
31
+x
32
+x
33
= 1, for plant 3
Solution Procedures:
- Construction procedures
- Improvement procedures
Example
Flow and distance information for three facilities A, B, C and three locations, 1, 2, 3 are as follows:
Flow (trips) Distance
From \to A B C From \ to 1 2 3
A 0 2 8 1 0 8 10
B 2 0 4 2 8 0 4
C 8 4 0 3 10 4 0
a. Write the binary variables for a quadratic assignment model.
b. How many terms does the objective function have in the model?
c. Write the OF-terms associated with the location combinations corresponding to flows between
facilities B and C.
d. Repeat (c) if the distance from 1 to 3 is reset to be equal to 5, while the distance from 3 to 1 remains
the same.
Solution
a. The binary variables for a quadratic assignment model are x
Aj
, x
Bj
, x
Cj
for j = 1,2 ,3. Here, x
ij
= 1
if facility i is assigned to location j, and 0 otherwise.
b. There are six possible location combinations for any two facilities. Since there are three ways to pair
these facilities (A and B, A and C, and B and C0, the total number of terms in the objective function is
18.
c. The objective-function terms associated with the location combinations corresponding to flows
between facilities B and C are:
64 x
B1
x
C2
+ 80 x
B1
x
C3
+ 64 x
B2
x
C1
+ 32 x
B2
x
C1
+ 80 x
B3
x
C1
+ 32 x
B3
x
C2
74
d. If the distance from 1 to 3 is reset to be equal to 5, while the distance from 3 to 1 remains the same, the
above terms become:
64 x
B1
x
C2
+ 60 x
B1
x
C3
+ 64 x
B2
x
C1
+ 32 x
B2
x
C1
+ 60 x
B3
x
C1
+ 32 x
B3
x
C2
Exercises
1. Without using formulations, briefly describe the purpose of the typical mathematical models used in
facility planning.
2. Solve for the squared Euclidean distance case for the minisum location model.
3. Four existing facilities are located at (4,2), (8,5), (11,8), and (13,2). The weights are equal to 1/6, 1/3,
1/3, and 1/6, respectively. (a) Draw the resultant weight diagram for x. (b) Draw the resultant weight
diagram for y. (c) Determine the optimal solution from both diagrams. (d) Construct the grid for finding
contours. (e) Draw the contour through the point (6,9) and the contour through the point (9,6).
4. Four machines are located in a plant at points (0,10), (20,0), (40,10), and (10,10). These machines
require maintenance at expected frequencies of 10, 11, 12, and 5 times per month, respectively. Because of
the nature of the maintenance, all machines must be maintained at the maintenance center. A machine must
be serviced by only one maintenance center. Moreover, the cost of transporting the machines to and from
the maintenance center is $10 per unit of distance, including the cost of lost profits resulting from the
machines being down. The monthly cost of owning and operating a maintenance center is $6000.
Rectilinear travel is assumed. (a) Calculate the number of possible allocations for two maintenance centers.
(b) List all possible combinations indicating which machines are allocated to which maintenance center. (c)
Find the total cost per month associated with the allocation of machine 1 to the first center, and machines 2,
3, and 4 to the second center.
5. Consider a single-facility rectilinear minimax location problem with existing facilities located at (2,10),
(7,9), (7,12), (3,15) and (1,14). (a) Find the optimal solution. (b) Find a contour line of value 8. Draw a
graph showing the location of all facilities, the optimal solution, and the contour.
6. Consider a minimax single-facility location problem with existing facilities at (1,1), (2,2), (3,3) and
(4,4). Assuming rectilinear distances, find the optimal location of the new facility and the corresponding
value z of the objective function.
7. In Problem 6 draw the contour corresponding to the value z = 10. Compute coordinates of each corner
point of the contour.
8. Consider the problem of designing a complex of six novelty and craft shops A, B, C, D, E, F in a resort
area. The six shops are to be located in a rectangular building consisting of six locations arranged as two
rows and three columns. The corresponding 6 cells or sites in a rectangular grid of the floor of the
building are numbered from left to right and top to bottom as 1, 2, 3, for the first row; and 4, 5, 6 for the
second row. Each of the six sites is a candidate for the location of each shop. The travel costs between
locations, shown in the matrix on the left, are proportional to the rectilinear distances. Distances are
measured in units of site widths, between the centers of sites. The matrix on the right shows the number of
trips between facilities:
0 1 2 1 2 3 0 4 6 2 4 4
1 0 1 2 1 2 4 0 4 2 2 8
2 1 0 3 2 1 6 4 0 2 2 6
75
1 2 3 0 1 2 2 2 2 0 6 2
2 1 2 1 0 1 4 2 2 6 0 10
3 2 1 2 1 0 4 8 6 2 10 0
(a) What kind of model can be used for solving this problem? (b) Find a lower bound on the total cost. (c)
If shops A, B, C, D, E and F are assigned to locations 2, 4, 5, 3, 1, and 6, respectively, find the total cost of
this assignment. (d) How many terms does the objective function have? (e) Find the terms (coefficient and
variables) associated with the assignments of facilities A and B.
9. There are three plants A, B, and C with potential sites 1, 2, and 3. The following costs per trip between
locations are known:
- 3 2
3 - 6
2 6 -
The number of trips between plants can be summarized as follows:
- 8 5
8 - 4
5 4 -
Write the mathematical formulation of the model. Find the numerical value of each coefficient in both the
objective function and each constraint.
10. Machines 1, 2, 3, 4 and 5 are located at the points (-1,0), (4,1), (-7,2), (-2,3), (5,4), respectively. There
are 6, 9, 4, 1, and 2 trips per week, respectively, between the machines and a new facility. (a) Use the
resulting force diagram to calculate the x-coordinate of the optimal location for a minisum model
considering rectangular distances. (b) Find the optimal location using a minimax model.
11. We are interested in determining the location (x,y) of an ambulance. There are four points of
emergency located at (4,2), (8,5), (11,8) and (13,2). The distance from these points to the nearest hospital
are 1, 2, 3, and 4, respectively. Find the location of the ambulance using the mini-max criterion. (a) Find
the optimal location. (b) Draw the contour through the point (9,6) and indicate the value of the objective
function.
12. Machines 1, 2, 3, and 4 are evenly spaced along a circumference having a known radius. The number of
trips to a new facility is shown in the diagram given below for each machine. Using rectangular distances and
the mini-sum model, find the location of the new facility. Show all your results.
150
120
10
5
2
1
4
1
3
1
1
76
13. In a company departments send jobs to be processed to locations each having a microcomputer available.
Let t
ij
be the time needed to take one job from Department i to Location j. Assume that i = 1,2,...,n; j =
1,2,...,m. Moreover, let d
i
be the demand (number of jobs) from Department i. Let K be the number of
microcomputers available for processing the jobs sent by the departments. Formulate a mathematical model to
determine the location of each microcomputer (at most one microcomputer per location) in order to minimize
the total time. Assume that all jobs from each department must be assigned to exactly one location.
77
11. WAREHOUSE OPERATIONS
- Introduction
- Functions in a Warehouse
- Receiving and Shipping Operations
- Dock Location
- Storage Space Planning
- Storage and Retrieval Equipment
Introduction
The material covered in this chapter comes from the textbook, the IE Handbook [1992], and Sule
[1994]. The cost of storage and warehousing operations is over 5% of the gross national product of the
U.S. There are more than 300,000 large warehouses and 2.5 million employees. The typical functions of a
warehouse are:
- Receiving the goods from a source
- Storing the goods
- Picking the goods when they are required
- Shipping the goods to the customers
There are two schools of thought concerning the value of warehouses. One school, the traditional
one, believes that warehousing is a "necessary evil", that it adds no value to the product but just a cost,
which generally is viewed as an indirect cost. A modern school of thought advocates that the true value of
the warehousing lies in having the right product in the right place at the right time.
For a warehouse to accomplish its objectives, managers need to study the variable resources and
mold them into an effective plan. The following objectives must be met for a warehouse to be successful:
(1) maximize effective use of space; (2) maximize effective use of equipment; (3) maximize effective use of
labor; (4) maximize accessibility of all items; (5) maximize protection of all items.
There are two types of planning needed: (1) contingency planning, and (2) strategic master
planning.
Contingency planning is defensive in nature. It intends to guard against predictable changes in
future warehouse requirements, whose timing is extremely difficult to establish or anticipate. Contingency
plans are required for the following short-term situations:
- Equipment downtime
- Labor problems
- Surges of activity
- Material supply problems
- Other emergencies
Strategic planning is offensive in nature. It guards against predictable future changes in warehouse
requirements whose timing can be anticipated. Its purpose is to forecast needs in advance to allow lead
time to meet the challenge. Warehouse strategic plans include actions to accommodate:
- Forecasted change in throughput
- Space, labor, equipment deficiencies
- Product mix changes
- Warehouse control problems
78
The development of strategic master plans includes: (1) document the existing situation; (2)
document requirements; (3) document deficiencies; (4) identify alternative courses of action; (5) evaluate
alternatives; (6) select and specify the recommended plan; (7) update the master plan.
Functions in the Warehouse
The following list includes the most frequent activities. These functions are also indicated on a
flow line in Figure 9.2:
- Receiving
- Prepackaging
- Put-away
- Storage
- Order picking
- Packaging and/or pricing
- Sorting and accumulation
- Packing and shipping
- Cross-docking
- Replenishing
Receiving and Shipping Operations
Activities, Requirements, Attributes
Receiving operations can be summarized as: spotting carriers, preparing carriers, unloading
carriers, recording the transactions, and dispatching. The requirements generated by these activities can
also be summarized as: area for staging and spotting carriers, dockboards (ramps between a dock and a
carrier), areas for palletizing and containerizing (pallets are portable platforms for handling, storing or
moving materials and packages, as in warehouses, factories or vehicles), area for placing goods prior to
dispatching, and an office.
Shipping operations can be summarized as: accumulating and packing the order, spotting carriers,
preparing carriers, loading, and dispatching. Again, these activities generate the following requirements:
area for staging orders, office, area for staging and spotting carriers, dockboards.
Desirable attributes of receiving and shipping systems include: direct flow paths, continuous flow,
area of concentration, material handling efficiency, safety, damage minimization, and housekeeping. A key
decision in planning R&S functions is whether or not to centralize the two functions. See Figure 9.3 for
possible arrangements of the R&S areas.
Receiving Principles
See textbook, pp. 396-400.
Shipping Principles
See textbook pp. 400-402.
Receiving and Shipping Space Planning
The steps required to determine space requirements are:
79
- What is to be received and shipped?
- Number and type of docks needed?
- Space requirements for areas in each facility?
Receiving and Shipping Analysis Chart
See textbook, Figure 9.4.
Number and Types of Docks
Docks are places for loading or unloading material. There are two general types: 90 docks and
finger docks (see Figure 9.8). Tables 9.1 and 9.2 summarize space requirements for both types. The
question of how many docks will be answered following material taken from [Konz, 1994]. All materials
and supplies come through the receiving area; all products leave through shipping. Inadequate operation of
these two functions can choke production. Consider if it is better to have a combined facility or separate
facilities for each function. Combining them will reduce the investment and increase the utilization of
equipment, and, perhaps, will promote labor flexibility. It also reduces security problems.
In general, if these areas are not combined they should be adjacent. Shipping areas are more
adaptable to mechanization than receiving areas because of the more uniform packages in shipping. Rail
docks generally are separate from truck docks.
Determine the number of pallets inbound and outbound for each dock every day of the month.
Note if all pallets or trucks are full. Remember the Pareto principle: "20% of the products are 80% of the
workload."
After making a schedule for arrivals and departures of raw materials, purchased items, and finished
products for each day of an average month, consider miscellaneous shipments of supplies and scrap and
waste (which may require special handling equipment). You will discover that the work is not uniform
through the month. In addition, some shipments will be handled with lift trucks, others manually. Staffing
the docks is not easy. It makes a good simulation project. To minimize the number of docks and trucks idle
time, reduce the time a truck occupies a dock but is not being processed. However, to minimize the staff
idle time, have a supply of trucks waiting to be unloaded.
Docks can be of general or special purpose. The trend to Just-in-Time (JIT) shipments has
increased the frequency of shipments and decreased the amount per shipment. Often the JIT shipment does
not go to long-term storage within the plant but goes quickly from the dock to the using department. Thus,
the dock versus using departments arrangement has become more important.
As a rough estimate, fork trucks can load or unload a full trailer from or to the adjacent dock in 45
minutes; load or unload a full rail car from or to the adjacent dock in 100 minutes; and move pallets
between a dock staging are and storage in low-bay floor stacking or storage racks -in either direction- at a
rate of 20 pallets per hour. For hand stacking of cases, a team of two can fill a trailer in 120 minutes and a
rail-car in 240, assuming the cases were delivered on pallets by fork trucks or extendible conveyors
[Stallard, 1974].
The basic equation to be considered (perhaps using a simulation program) is
N
docks
=
S T H
H
f d a y t r u c k
d a y
80
where S
f
is a safety factor (depending on distribution of arrival rates, distribution in load/unload times, size
of marshaling area, and desired maximum waiting time in the marshaling area), T
day
is the average number
of trucks per day, H
truck
is the average hours to load/unload a truck, and H
day
is the average hours available
per day.
Internal R&S Area Requirements
In order to determine these requirements, we need to focus on the following factors: personnel
convenience, offices, material handling equipment maintenance, trash disposal, palletizing and packaging,
trucker's lounge, buffer or staging areas, and material handling equipment maneuvering (see Table 9.3 for
minimum requirements).
Dock Operations Planning
Equipment requirements for R&S areas can be classified as: (a) dock levelers, (b) bumper pads,
and (c) dock shelters.
- Dock levelers: steps (no trucks allowed); portable ramps (using dock-boards or yard ramps, see
Figure 9.8); permanent adjustable ramps (most frequently used, Figure 9.9); raising carriers
(truck levelers (Figure 9.10); and raising dock (scissors-type lifting docks, Figure 9.11).
- Bumper pads: molded or laminated rubber cushions that, when fastened to a dock, allow for the
force to be absorbed from trucks hitting it.
- Dock shelters: flexible shields that, when engaged by a carrier, form a hermetic seal between the
docks and the carriers. See Figure 9.12. Several advantages associated with their use are:
energy saving, increased safety, improved product protection, better security, reduced
maintenance, and reduced spotting time.
Dock Location
Typical factors influencing dock location are:
A. Labor requirements
B. Material flow patterns
C. Operating capacity
D. Energy considerations
E. Shipping and receiving schedules
Storage Space Planning
A chart that is used to facilitate the identification and calculation of space requirements is the
storage analysis chart. A sample chart is shown in the textbook Figure 9.16 (page 419).
There are two types of storage location methods: (1) randomized storage; (2) dedicated storage.
The first type is used when a product unit (stock-keeping unit) can be stored in any available storage
location. Typically, when an inbound load arrives for storage, the closest-available-slot is designated, and
retrievals are executed on the FIFO basis. Dedicated storage is used when a unit of product (stock-keeping
unit) is assigned to a specific storage location or set of locations. Within this type of storage there are two
variations: storage according to part number sequence, and storage according to level of activity
(storage/retrievals per unit time) and inventory level.
81
An example of the calculation of area requirements due to aisles is shown in Example 9.5.
Honeycombing, wasted space resulting from partial utilization of space in order to eliminate storage
blocking is illustrated in Figure 9.23. The most important objectives of and fundamental principles on
which storage layout planning is based are shown below:
Objectives
- space effectiveness
- material handling efficiency
- cost
- flexibility
- housekeeping
Principles
Popularity: materials should be stored so that travel distance is inversely proportional to the degree
of popularity of the material. See Figures 10.17, 10.19, and Example 10.5.
Similarity: items that are shipped (and received) together should be stored together.
Size: parts should be stored in locations that accommodate them with minimum space wasted.
Characteristics: (a) perishable materials; (b) oddly shaped and crushable items; (c) hazardous
materials; (d) security items; (e) compatibility.
Space utilization: (a) conservation of space; (b) limitations of space; (accessibility).
Storage and Retrieval Equipment
- Bulk stacking (Figure 6.61)
- Stacking frame (Figure 6.62)
- Single-Deep and Double-Deep racks (Figures 6.63, 6.64)
- Drive-In and Drive-Through (Figure 6.65)
- Pallet flow racks (Figure 6.66)
- Push-Back racks (Figure 6.67)
- Mobile racks (Figure6.68)
- Cantilever racks (Figure 6.69)
Exercises
1. See Example 9.1.
2. (a) Example 9.2 (reorder point, maximum quantity to be stored, average inventory). (b) Example 9.3
(effect of storage method on space requirements).
82
12. STORAGE PLANNING MODELS
- Warehouse Layout Model
- Automated Storage and Retrieval System (AS/RS)
Warehouse Layout Model
We will consider an analytical model for the layout of a warehouse. The basic situation to be
studied can be described as follows:
- Type of storage: dedicated (a set of storage slots or locations assigned to a specific product)
- Type of travel: rectilinear
- Purpose: to assign products to storage locations in a warehouse
- Input data: q = number of storage locations; n = number of products; m = number of input/output
points (docks); S
j
= number of storage locations required by product j; T
j
= number of trips in/out of
storage for product j; p
i
= percentage of travel in/out of storage to/from point i; d
ik
= distance or time
required to travel from point i to location k
- Decision variable: x
ik
= 1 or 0 for assigning or not assigning product jto location k
- Measure of effectiveness: minimize total expected distance traveled
Mathematical Model:
Minimize
j
n
=
_
1 k
q
=
_
1
T
S
j
j
i
m
=
_
1
p
i
d
ik
x
jk
j
n
=
_
1
x
jk
s 1, k=1,...,q
k
q
=
_
1
x
jk
= S
j
, j=1,...,n
x
jk
= 0,1 for all j and all k
Solution Procedure
The above objective function can be rewritten as
Minimize
j
n
=
_
1
T
S
j
j
(
k
q
=
_
1 i
m
=
_
1
p
i
d
ik
) x
jk
Using f
k
=
i
m
=
_
1
p
i
d
ik
, the above objective function can be formulated as
Minimize
j
n
=
_
1
T
S
j
j
(
k
q
=
_
1
f
k
x
jk
) =
j
n
=
_
1
T
S
j
j
(f
1
x
j1
+f
2
x
j2
+ +f
q
x
jq
)
Therefore, a heuristic procedure for solving this model can be sketched as follows:
(a) Relabel the products according to the decreasing order of their Tj/Sj values
83
(b) Find the values of f
k
(expected distance traveled between location k and docks)
(c) Assign the locations to products according to their f-values from lowest to highest
Example
The dimensions of a rectangular warehouse are 40x40 ft. The warehouse has one receiving dock located at
the northeast corner of the layout, and one shipping dock located exactly at the midpoint of the west side of
the layout. Two products A and B are going to be stored using a dedicated-storage strategy. The total
number of pallets per week for product A is 100, and for product B it is 80. Furthermore, product A
requires 10 storage bays, each having dimensions of 10x10 ft. Product B requires 4 storage bays of the
same dimension. Find the optimal warehouse layout. Provide a sketch of your layout.
Solution
B B BB
AA AA
AAAA
AA - -
Automated Storage and Retrieval System (AS/RS)

- Design considerations
- Basic formulas
- Example
AS/RS's have a significant effect on the performance of a storage/warehousing facility. With the
aid of computers, AS/RS's can be integrated into manufacturing and distribution processes. An AS/RS
consists of storage racks, storage/retrieval machines, and input/output or pickup/deposit stations (Chapter
6). The configuration of a typical AS/RS is shown in Figure 12.9. Each S/R machine operates in a single
aisle and services storage racks on each side of the aisle. An illustration of the basic terminology used is
shown in the figure given below (from Sule 94, page 412):
84
AS/R System Terminology
A vertical stack or storage from floor to ceiling is known as a bay. A series of bays located side by
side is referred to as a row. Spaces between rows are called aisles. The aisles are used for stacker cranes to
move up and down between rows. Each crane serves both sides of an aisle. Light loads of less than 2500
pounds require a 6-inch clearance for rack support and crane entry. Heavier loads require 9 inches.
The material that follows is taken from Sule [1994]. It is quite common to observe racks that are
80-90 feet high being served by computer-controlled machines (stacker cranes) carrying 3000-4000-pound
loads. They can travel at speeds of 500 feet per minute in aisles that are only 6 inches wider than the
narrow aisle cranes. Computer control of inventory can account for savings of as much as 20 percent of the
inventory cost. Such a fully mechanized system requires very little labor to operate. A single individual
con operate a warehouse containing thousands of parts. The system also minimizes the need of material
handling equipment and material handling operations.
The AS/RS has four major components: the S/R machines, the storage structure, conveying
devices, and controls. Storage retrieval cranes form one of the most important parts of the system. These
cranes can carry heavy loads and can simultaneously move horizontally and vertically to reach a desired
location. They travel on floor-mounted rails guided by electrical signals and may be equipped to function in
single-command mode (store or retrieve) or double-command mode (store and retrieve) in one trip. The
storage structure (up to 90 feet) interfaces with storage/retrieval machines. The guide rails within it must
allow the cranes to move in and out freely, stopping exactly at the required location. Conveying devices,
such as forklift trucks, conveyors, towlines, guided vehicles, are auxiliary equipment interfacing with the
storage/retrieval machines and several departments within the plant (for example, shipping, receiving, and
manufacturing). Computers and controlling mechanisms that tie the computers to the storage/retrieval
machines and auxiliary equipment are the key to the control of the system. Most modern systems use a
distributed-system consisting of several small computers (each controlling a separate device)
communicating with one large computer in charge of inventory maintenance, cost calculation, and billing
information.
A. Design Considerations
Bay
Crane
Aisle Unit
Aisle
Crane Clearance
Bay Height
Rack Length
Bay Width
Rack
85
1. Determine the dimensions and weight of the load to be stored
2. Determine the number of units to be stored
3. Determine the throughput rate per hour
4. Determine the number of cranes needed
5. Determine the number of rows required
6. Determine the building height and load height
7. Determine the number of bays
8. Determine the system length
9. Determine the system width
B. Basic Formulas
Number of cranes =
throughput
(cycles / hour)x(efficiency)
In the above formula, the throughput is the sum of the maximum number of loads in and loads out
carried per hour; the number of cycles is usually 32 for single-cycle cranes, and 22 for double-cycle cranes;
moreover, the efficiency rate is commonly equal to 0.85.
Number of bays per row =
number of units to be stored
(number of rows)x(number of loads vertically stacked per bay)
In the above formula, the number of rows is twice the number of cranes.
An important factor affecting the height of the storage system is the number of unit loads vertically
stacked in each bay. If the height of the building is given, the number of vertical stacks can be calculated
using the following formula:
Number of loads vertically stacked per bay =
height of storage building
(load height + clearance between stacks)
- 1
The desired value is the integer part of the calculation. The subtraction of 1 is to allow for floor and ceiling
clearance. If this clearance is specified in advance, there is no need for the subtraction.
The width of the storage system essentially depends on both the number of cranes (or aisles) and
the aisle unit, as indicated below:
System width = (aisle unit) x (number of cranes)
where the aisle unit consists of an aisle and two neighboring storage racks. A storage cell should be deep
enough to accommodate the load, and the aisle should be wide enough to facilitate the movement of the
load. The aisle unit should include twice the storage width (which is the same as the depth or length of the
unit load) plus the aisle width (which should accommodate the length of the load) plus clearance. Thus, it
should be at least equal to 3 times the length of the unit load plus 2 feet for clearance.
The length of the storage facility depends on the bay width and the number of bays determined
thus far. More specifically, the length of a storage rack is equal to the combined width of the bay and
clearance between bays times the number of bays in a row, plus the crane runout clearance:
System length = (width of bay + clearance) x (number of bays/row) + (crane clearance)
where the crane runout clearance is usually 25 feet.
86
C. Example
A manufacturing company wishes to store a unit on a 36x48x24 pallet having a weight of 1400 lb and 75
dual cycles per hour. The total storage is 18,000 unit loads. The height of the building is 80, but
clearances of 4.5 from the ceiling and 6 from the floor for rack support are needed. (a) Determine the
number of stacks that can be accommodated with height of the load. (b) Determine the number of dual
cranes needed. (22 cycles per hour). (c) Determine the number of bays needed. (d) Determine the storage
dimensions. Consider a clearance equal to 6 between stacks and an availability factor of 85% for cranes.
Solution
(a) Number of loads vertically stacked per bay = [80 (4.5 + 0.5)]/[2 + 0.5] = 30.
(b) Number of dual cranes = 75/(22 x 0.85) = 4.01 = 5 cranes. Thus, number of rows = 10.
(c) Number of bays per row = 18,000/(10 x 30) = 60
(d) Width = (aisle unit) x (cranes) = [3(4)+2](5) = 70 feet, Length = (3 + 0.5) x 60 + 25 = 235 feet,
Height = 80 feet.
Exercises
1. (a) Example 9.4, pages 422-425. Compute the objective function value. (b) Example 12.8, pages 549-
551. Compute the objective function value.
2. A warehouse is 200' long and 100' wide with three docks located as shown in the following figure, where
the distance between rows of storage locations is negligible. Two products A and B are to be stored.
Product A enters the warehouse at dock1 at a rate of 600 pallet loads per month, and is shipped from docks
2 and 3 at rates of 120 and 480 pallet loads per month, respectively. Product B enters the warehouse at
dock 1 at a rate of 1000 pallet loads per month and is shipped from docks 2 and 3 at rates of 200 and 800
pallet loads per month respectively. Storage spaces of 8000 and 12000 square feet are required for A and
B, respectively. The warehouse is arranged into bays of 20' by 20' and only one type of product can be
stored in a given bay. Assume rectilinear travel.
Dock 2 Dock 3
Dock 1
(a) Determine the order in which the products should be considered when assigning storage locations.
(b) Find the expected distance traveled between storage location 1 (left-top cell) and the docks.
3. Consider Example 9.4, pages 422-425, textbook. (a) Compute the average distance for randomized
storage; (b) compute the average distance for dedicated storage (Figure 9.19 shows the layout); (c) compute
an upper bound on average distance traveled for random storage that will be equal to or less than that for
dedicated storage (Figure 9.20 shows the layout).
4. Consider a rectangular warehouse layout with 10 x 10 ft storage bays. The layout consists of four rows
and four columns of bays. There is one dock located at the top-left corner of the layout. Two classes of
products A and B are to be stored using dedicated storage. Class A items represent 20% of the
input/output activity and have a requirement of 8 storage bays. Class B items represent 80% of the
87
input/output activity and have a requirement of 8 storage bays. Design an optimal layout. Include all work
needed to support your answer.
5. A manufacturing company wishes to store a unit on a 36x48x24 pallet having a weight of 1400 lb and
75 dual cycles per hour. The total storage is 18,000 unit loads. The height of the building is 80, but
clearances of 4.5 from the ceiling and 6 for the rack support are needed. (a) Determine the number of
stacks that can be accommodated with height of the load. (b) Determine the number of dual cranes needed.
(22 cycles per hour). (c) Determine the number of bays needed. (d) Determine the storage dimensions.
Consider a clearance equal to 6 between stacks and an availability factor of 85% for cranes.
6. Read Section 12.6. See Examples 12.15, 12.19.
7. Suppose the storage area for a warehouse is as shown below. Two input/output points serve the storage
area, with the overall activity being about 50% for each dock. All movement is in full-pallet quantities.
The storage are is subdivided into 10x10 ft storage bays. Three classes of products (A, B, C) are to be
stored. Class A items represent 20% of the input/output activity and have a dedicated-storage requirement
of 3 storage bays; class B items generate 65% of the trip activity and have a dedicated-storage requirement
of 6 storage bays; class C items generate 15% of the input/output activity and have a requirement of 5
bays. Indicate the optimal warehouse layout, showing all supporting calculations.
8. Consider a rectangular warehouse of dimension 3 by 3 bays. Each storage bay is of size 20 x 20 ft.
There are two products A and B and one dock located at the middle of the left-hand side of the warehouse.
Product A requires 4 storage locations and product B requires 3 storage locations. Product A represents
20% of the input/output activity and Product B represents 80% of this activity. (a) Find the optimum
dedicated-storage layout; (b) find the expected distance traveled for dedicated storage; (c) if randomized
storage is used, such that each bay is equally likely to be used for storage, find the expected distance
traveled; (d) compute an upper bound for randomized storage that will yield an expected distance traveled
equal to or less than that for dedicated storage.
9. A manufacturing company wishes to store a unit on a 24" x 48" x 20" pallet having a weight of 2800 lb.
The throughput is 75 dual cycles per hour. The total storage is 15000 unit loads. The height of the building
is 75'. A total floor and ceiling clearance of 2' is needed. Determine the storage dimensions. Write all
specific assumptions.
Dock
Dock
88
13. PLANT LOCATION MODELS
Mathematical Model
The model for a simplified version of the problem is:
Minimize z =
i
m
=
_
1 j
n
=
_
1
c
ij
y
ij
+
j
n
=
_
1
f
j
x
j
i
m
=
_
1
y
ij
s mx
j
for j = 1, ..., n
j
n
=
_
1
y
ij
= 1 for i = 1, ..., m
y
ij
> 0 for all i,j
x
j
= 0 or 1 for all i,j
where m is the number of customers; n is the number of plant sites; c
ij
is the cost of supplying all demand by
customer i from a plant located at site j; f
j
is the fixed cost of locating a plant at site j; y
ij
is the proportion of
the demand from customer i supplied by a plant at site j; and x
j
is equal to 1 if a plant is located at site j, or
equal to 0 otherwise.
Heuristic Solution Procedure
- Select the site associated with the lowest total for annual costs of meeting demand plus annual
fixed cost of providing a new plant (or warehouse).
- For remaining sites, evaluate the reduction in total annual cost, if any, if a second plant is to be
located in another site in conjunction with the plant for which a site was previously determined.
Locate an additional plant in the site associated with the largest reduction.
- Continue with this procedure until no additional plants are justified.
Exercises
1. Write down the specific model (no solution needed) for the plant location problem involving two
customers and three plant sites. The fixed costs for plants in sites 1, 2, and 3 are 100, 150, and 120,
respectively. The costs of supplying all demand of each customer from a plant located at sites 1, 2 and 3,
respectively, are 12, 23, 10, for customer 1; and 9, 15, 40 for customer 2.
2. There exist five potential sites A, B, C, D, E for a new plant. Major customers are located in five cities 1,
2, 3, 4, 5. Annual costs of meeting the customer's demands in each city from each site are:
A B C D E
Customer 1 100 500 1800 1300 1700
Customer 2 1500 200 2600 1400 1800
Customer 3 2500 1200 1700 300 1900
Customer 4 2800 1800 700 800 800
Customer 5 10000 12000 800 8000 900
Annual fixed costs of providing a new plant at sites A, B, C, D, and E are 3000, 2000, 2000, 3000 and
4000, respectively. How many plants need to be built and where?
3. Let c
ij
be the cost of assigning a unit of demand from source i to location j, where i = 1,2,...,n; j =
1,2,...,m. Let d
i
be the demand from source i. Let K be the number of facilities available for placement (at
89
most one facility in each location). Formulate a mathematical model to minimize the total cost, assuming
that the demand for each source must be assigned to at least one location.
90
14. SPECIAL TOPICS*
A. FACILITIES SYSTEMS
The facilities systems considered in this chapter include: (1) structural system; (2) atmospheric
system; (3) enclosure system; (4) lighting and electrical system; (5) life safety system; (6) sanitation system.
This material is covered in Chapter 11.
B. NON-MANUFACTURING APPLICATIONS
- Facilities planning for retail stores
- Facilities planning for food services
- Facilities planning for airports
- Facilities planning for hospitals
(*) This topic is optional.
91
APPENDIX A
OVERVIEW OF TYPICAL MANUFACTURING PROCESSES
1. SHAPING PROCESSES
To change the shape or physical appearance of a material or part may be necessary when a
manufacturer needs the creation of a product. The methods about to be described will allow discovery and
aide in the planning and handling of materials when manufacturing a product is the goal.
Casting
Casting can be described when a molten metal is poured into a mold. The mold is a cast of the desired
shape. Once the molten material has cooled, it will have produced the desired form. The typical casting
processes are sand casting, plaster mold casting, shell casting, die or pressure casting, and permanent mold
casting.
Forging (Hot and Cold)
This process shapes material by applying a great degree of force with a hammering action. Hot molten
material, up to 60 percent of melting point (absolute temperature), is shaped into the desired product by
applying force and pressure with a hammer or striking object.
Extruding
Extruding is a process that forces a material (metal powder, plastics, or blocks of metal) through a die to
produce long shapes.
Rolling
Rolling is a process that flattens steel ingots into shapes, such as blooms, billets, or slabs. This process is
accomplished by sending the steel through a rolling mill.
Roll Forming
The purpose of roll forming is the reduction and tapering of short lengths of bar stock by allowing the stock
to be placed through rolls.
Drawing/Wire Drawing
This series operation involves a die that brings a product closer to the final form by applying a steady
pressure at a controlled rate using hydraulic presses. The method includes the dies getting smaller and
smaller as the process continues. The end product is a continuous wire made from bar stock.
Swaging
Swaging uses the application of cold working. This allows material to be compressed by force. The
material is allowed to flow into the desired shape of the die.
Bending
92
The outcome of bending is the formation of angles, channels, tubes, or complex irregular shapes from strips
of sheet metal. This process is accomplished by directing the sheet metal between several rolls. The rolls
create a preferred shape.
Punching
When a metal sheet has force applied to it by a die, a stamp of the predetermined shape will be produced.
Shearing
Shearing is the cutting of metal by producing a shear force upon the material greater than its ultimate
strength between adjacent sharp edges.
Spinning
To create a thin round shape, a metal must be spun or rotated against its desired form, which could be
numerous items, such as wood, plastic, or metal. The metal is then gradually worked into the shape by using
rollers and hand tools that are pressed against the rotating work piece.
Stretch Forming
The formation of a new shape by the means of stress forming is when a sheet of metal is placed on a metal
press and stressed beyond its elastic limits, which causes the metal to take shape of the die.
Torch Cutting
Torch cutting can be described as the burning or cutting of heavy steel with a cutting torch. The torch is
positioned on the base metal to preheat the metal to its critical point. Once the metal reaches its critical
point, the oxygen is turned on, thus burning a hole through the base material.
Explosive Forming
When extremely high pressures caused by explosives are applied to material, products are formed at a rapid
rate. Shock waves, which are created by the explosive device, are passed through the material to be
changed, which creates the preferred shape.
Electrohydraulic Forming
Electrical energy is transferred into workpiece through the use of many capacitors that are fully charged.
When the capacitors are discharged the voltage passes through a nonconducting liquid medium, which
causes shock waves. The shock waves travel at high velocities supplying the necessary force to form the
workpiece into shape.
Magnetic Forming
Again, electric energy is transferred into work. This work is utilized by placing the material near the
energy, which in some cases is a high-energy coil. The coil produces a magnetic field, which is stronger
than the elasticity of the material. Therefore, manipulates the material into a new shape.
Electroforming
Electroforming is a special process that requires electrolytic deposition. The metal is placed on a
conductive, removable mold, which creates a piece that is accurate with an internal surface finish.
Powder Metal Forming
93
In this process, powder metal is kept at a state below the melting point, which allows the powder metal to be
manipulated into a shape by adding pressure. The application of heat during or after the process is called
sintering. Sintering makes the bonding complete.
Plastics Molding
Plastic molding applies to all materials that can be molded or modeled. Any material when heated and
pressure is applied and the shape can be altered is considered plastic.
2. TREATING PROCESSES
The treatment of a material is another type of operation. The purpose of treatment is to change the
physical appearance of a material. There are four types of treatment: heat treatment, hot working, cold
working, and shot peening.
Heat Treatment
In this situation, the material has heat added to it or is cooled down. The difference in temperature from its
original temperature will change the physical appearance of the material. In some cases, heat treatment can
give a material resistance to specific actions, like cutting, the reduction of grain size, increased toughness,
removal of internal stresses, and/or additional manufacturing.
Hot Working
Hot working is another operation of treatment. This operation involves a mold for casting material into a
desired shape. While the material is extremely hot, above recrystallization temperature, the material is then
shaped into the preferred form.
Cold Working
Cold working is in a way a second step to the hot working. Cold workings function is to add strength to the
material processed. Not all materials necessitate cold working. Mostly, ferrous materials need the
application of cold working to increase their strength.
Shot Peening
Shot peening is actually the stretching of the outer layer of fibers on a specific piece of material. The
process involves a blasting or hurling spray onto the material being treated. This high speed spray creates
dimple markings over the entire surface. The slight imperfections actually adds strength to the material by
improving the fatigue resistance.
3. ASSEMBLING PROCESSES
The next type of operation is the assembly of materials or parts. To assemble one or more parts
can require several methods.
Welding
This process adjoins two parts or pieces of material by melting a portion of both parts together.
Soldering
94
Soldering is a process of bringing together two parts. The adhesive, the solder, is actually the backbone of
the unification of materials. The solder, a molten material with a temperature below 800
o
F, is placed
between the two materials to be joined. When the solder solidifies, the two parts become one.
Brazing
Another type of operation that assembles materials is brazing. This process is similar to soldering in that it
uses a material to adjoin two other parts together. The difference in this operation is that the temperature of
the molten material is above 800
o
F, but lower than the melting temperature of the other two materials, and
thus forms a strong bond.
Slintering
Slintering bonds powders(metal, plastic, or others)together through heat in a high temperature oven.
Riveting
In this process a metal bolt or pin (solid or hollow) is placed through the holes of the material to be
assembled. Then a riveting gun bestows a number of intense blows to knock the rivet into a shape that
expands on the outside of the holes. This ensures that it does not pull back through the hole. Thus, the
material is assembled together.
Screw Fastening
This is the most widely used method of assembling materials. Screw fastening can be applied with a screw
or a bolt being pushed through two parts, thus adjoining the parts.
Adhesive Bonding
When an adhesive, like glue, resin, or other types of adhesive materials are used to unite parts together.
Pressing
This process is made possible when two parts are forced or pushed together. One of the parts has a hole or
grove that is slightly smaller than the other part. Thus, when pressed together, the material will be displaced
and the parts will be held together.
4. PLASTIC PROCESSING
Finally, when using a product that is widely used in numerous manufacturing situations, several
processes are necessary for molding, shaping, and producing products.
Compression Molding
This process involves plastic being placed or poured into a mold, heated, and then pressure is applied. The
plastic will then be forced to take the shape of the mold. After the plastic has cooled, the finished product
can be removed form the mold.
Injection Molding
Similar to compression molding is the process of injection molding, yet injection molding is more rapid.
Plastic is melted in one area, which is then forced into a mold on a rotating table of molds under high
95
pressure or using hydraulics. As the table turns, the plastic fills one mold at a time, then moves on to the
next. Once the mold cools, it is emptied, and the process continues.
Transfer Molding
This process is similar to injection molding. The difference is the production rate. Transfer molding
involves plastic taking the form of a mold, yet not at a high volume level.
Rotary Molding
This process is responsible for the manufacturing of hollow plastic objects. The process begins with two
molds with narrow walls. They are placed on a rotation device, then spun around like a windmill. The
spinning allows the hot plastic to solidify on the outer surfaces of the mold.
Blow Molding
The first step in the process of blow molding is to place a heated piece of thermoplastic on an air valve and
in between the two halves of a mold. Then the halves are brought together and air is forced through the
thermoplastic blowing the plastic into the shape of the mold. After cooling, the mold then separates and the
finished product is left.
Extrusion
Extrusion is a process that forces plastic through a die to produce long shapes.
Thermoforming
This process involves the formation of a plastic sheet into a desired shape. With the help of heat, air
pressure, and other mechanical means, the shape is created.
96
APPENDIX B
STANDARD TIMES FOR SELECTED PROCESSES
Sample Calculation for Drilling a Hole
(a) The diameter of the hole is 1/8 inch.
(b) The depth of the hole is 1/2 inch.
(c) Fm = (3.82)(0.003)(350)/(1/8) = 32.088 in./min.
(d) C.T. = .5/32.088 = 0.0156 min.
Sample Calculation for Drilling a Blind Hole
(a) l = 0.0625/ tan(118/2) = 0.0376
(b) C.T. = (.5 + 0.0376)/32.088 = 0.0168 min.
Sample Calculation for Slab Milling
(a) A diameter of 3 inches will be used.
(b) The number of teeth per cutter is 8.
(c) Cutter RPM: N = 12(750)/((3.14)(3)) = 955.414
(d) Table Feed: Fm = (0.02)(955.414)(8) = 152.86
(e) Cutting Time: A = 3/2 = 1.5
(f) C.T. = (2 + 1.5)/152.86 = 0.0229 min.
Sample Calculation for Turning
(a) The largest diameter of the workpiece is
assumed to be 1 inch.
(b) The length of the workpiece used is 2 inches.
(c) A 2 inch overrun allowance is used.
(d) Workpiece RPM: N = 12(800)/((3.14)(1)) =
3055.78
(e) Cutting Time: C.T. = (2 +
2)/((0.0475)(3055.78)) = 0.0276 min.
Operation Type Description Steps Calculations Formula Variables
Drilling Cutting time Feed Rate Fm = Feed rate in inches per minute
for drilling a hole F = Feed rate in inches per revolution
Sf = Surface feet per minute
D = Diameter of drill in inches
Cutting Time C.T. = Cutting time in minutes
Fm = Feed rate in inches per minute
L = Depth of the hole in inches
Cutting time Lead Time l = is the lead time for the drill (inches)
for drilling a blind hole r = radius of drill in inches
A = is 1/2 the included angle of the drill
(* The commercial standard for the
included angle of a drill is 118o)
Cutting Time C.T. = Cutting time in minutes
L = Depth of the hole in inches
Fm = Feed rate in inches per minute
(refer to the previous formula)
Milling Cutting time for Cutter RPM N = RPM
milling V = Cutting velocity (ft./min.)
D = Diameter of cutter
Feed Rate Fm = Table feed (inches per min.)
Ft = Feed per tooth (inches per tooth)
N = RPM
n = Number of teeth in cutters
Cutting Time C.T. = Cutting time
L = Length of cut (inches)
A = Overrun allowance (inches)
Fm = Table feed (inches per minute)
D = Diameter of cutter (inches)
Lathe Cutting time for Workpiece RPM N = RPM of the rotating workpiece
turning V = Cutting Velocity (Sfm)
D = Diameter of workpiece (lg. diameter in inches)
Cutting Time C.T. = Cutting time(min.)
L = Length of cut (inches)
Fr = Feed (inches per revolution)
N = RPM
A = Overrun allowance (inches)
F
F S
D
m
f
=
382 . ( )
C T
L
F
m
. . =
l
r
A
=
tan( )
C T
L
F
m
. . =
+1
N
V
D
=
12
314 .
F F N n
m t
= * *
A
D
=
2
C T
L A
F
m
. . =
+
N
V
D
=
12
314 .
C T
L A
F N
r
. .
*
=
+
97
APPENDIX C
EQUIPMENT COSTS
Operation Tools Type Specification Price Remarks
Type Power Capacity Dimension Speed Max Distance
Drilling Hand-Held Cordless Drill Battery pack; 1-hr fast charge 2 speed 146.71 $
Bench Drill Press 1/2 hp motor 5/8" drilling 14" swing 12 speed 17" to table 229.95 $
Floor Model Drill Press 1 hp motor 1" drilling 20.5" swing 12 speed 25" to table 550.00 $
Variable Speed Drill Press 1.5 hp motor 125" drilling 22"x36"x76" 33-1/8" to table 1,695.00 $ High Standard of productivity and efficiency.
(WxDxH) Good for job shop and school .
Medium drilling duty.
Radial Drilling 2 hp motor 25-9/16" height 47-5/8" from base 9,945.00 $ High Quality Production Rate.
arm elevation surface to
spindle-end
32-1/2" from column
surface to
spindle center
Multi-Spindle Drilling Heads Basic unit with 6 spindles 587.00 $ Multiple drilling applications.
Basic unit with 29 spindles 2,867.00 $
Milling Toolroom Milling Machine 4 hp motor 14"x20" 40-2000 35,195.00 $ Used in making tools, gauges, dies, etc.
work surface rpm Great versatility for milling flat, slanted, or
area spindle rounded surfaces.
Drilling, slotting, and boring
Universal Milling 1.5 hp motor 66"x48"x46" 270-3200 20" spindle to table 2,695.00 $ Vertical turret milling machine.
(HxWxD) rpm Great for milling, boring, engraving, drilling,
spindle and incline work.
Vertical Milling Machine Positive 2-way power feed Lever for 4,895.00 $ Job shop.
Power up and down feed fast quill
Separate manual feed movement
CNC Milling Machine 3 hp frequency drive Full 3D 3.5" floppy 24,995.00 $
Conversational programming machining drive
Turning Toolroom Lathe 3 hp motor Highly 76"x30"x58" 40" between centers 5,595.00 $ Precision version of a bench lathe
accurate (LxWxH)
Production Lathe 8/5 hp motor 2 speed 40"-85" between 16,950.00 $
centers
Turret Lathe 3 hp motor 25"x46" 8" turret to spindle 7,995.00 $ Horizontal: ram or saddle type.
space floor Vertical: single or multistation.
CNC Small Part Turning Center 5 hp motor 8" max. turning 19" between centers 59,750.00 $
diameter
Speed Lathe 24" bed 70-2800 17" between centers 645.00 $ Used for woodworking, metal spinning,
rpm polishing.
98
APPENDIX D. IMPORTANT FORMULAS
1. MACHINE AND CREW FRACTIONS
Notation
P = production quantity per day
t = standard time per unit
H = number of hours per day
s = daily set-uo time per machine
p = machine availability factor
p
c
= crew availability factor
Machine Fraction
N =
Pt
H s p ( )
Crew Fraction
N
c
=
c
p s H
Pt
) (
2. CONVEYOR MODELS
s , k, p, r = k mod p
{f
i
(n)}, i = 1, , s; n = 1, , p
{F
1
(n)} = {
i
f
i
(n)}
H
1
*(1) = 0
H
1
*
(n) = H
1
*
(n-r) + F
1
(n)
H
i+1
*
= H
i
*
(n) f
i
(n)
C = Min H
i
*
(n)
i,n
H
i
(n) = H
i
*
(n) - C
B = Max H
i
(n)
i,n
3. LOCATION MODELS IN FACILITY PLANNING
A. Minisum Location Model
Notation
X = (x, y): location of new facility
P
i
= (a
i
, b
i
d(X, P
i
) = distance between new facility and facility i
99
Model
Minimize f(X) =
i
m
=
_
1
w
i
d(X, P
i
)
d(X,Pi) = | x a
i
| + | y b
i
|
Minimize f(X) =
i
m
=
_
1
w
i
| x a
i
|+
i
m
=
_
1
w
i
| y b
i
|
Solution Procedure Using Cumulative Weight Diagram
1.This objective function is separable (x and y can be obtained separately)
2.The optimal value of x = x* equals one of a
i
values
3.The a
i
j
i
=
_
1
w
j
4.The value x* is the first a
i
i
m
=
_
1
w
i
/2
5. The optimal value of y = y* equals one of the b
i
values
6. The b
i
j
i
=
_
1
w
j
7. The y* is the first b
i
i
m
=
_
1
w
i
/2
Solution Procedure Using Resultant Force Diagram
The resultant weight or force is defined as the sum of weights to the left of a point minus the sum of weights
at the point or to its right. Using a procedure similar to the above procedure, but adding twice the weight at
each point we can plot the resultant force diagram. The optimal solution corresponds to a resultant force
equal to zero.
Contours
R
ij
= N
j
/ M
i
; S
ij
= - (1/ R
ij
) = - (M
i
/ N
j
). The resultant weight is defined as the sum of weights to the
left of a point minus the sum of weights at the point or to its right. Procedure to be followed:
1.Horizontal axis: mark a
i
values for x.
2.Vertical axis: mark b
i
values for y.
3.Generate a rectangular grid using marked points on each axis.
4.Find the resultant weight (force) for each interval in both axes.
5.For each cell of the grid compute S
ij
= -M
i
/N
j
, where M
i
is the resultant weight (force) for the x-axis and
N
j
the resultant weight (force) for the y-axis.
6.Choose any point in any cell, draw a linear segment having slop equal to S
ij
, and join it to another
segment in the next cell, continuing until a convex polygon is obtained. This is a contour with all points
having the same value of the objective function.
A. Minimax Location Model
Notation
X = (x, y) : location of new facility
P
i
= (a
i
, b
i
d(X, P
i
) = distance between new facility and facility I
Model
Minimize f(X) = max{d(X,P
1
), d(X,P
2
), ..., d(X,P
m
)}.
d(X,P
i
) = | x - a
i
| + | y - b
i
|
Minimize f(X) = max{| x - a
1
| + | y - b
1
|, | x - a
2
| + | y - b
2
|,...,| x - a
m
| + | y - b
m
|}
Solution Procedure
c
1
= min (a
i
+b
i
), c
2
= max (a
i
+b
i
), c
3
= min (-a
i
+b
i
), c
4
= max (-a
i
+b
i
), c
5
= max (c
2
-c
1
, c
4
-c
3
).
100
Connecting points: (x*,y*) =
1
2
(c
1
-c
3
, c
1
+c
3
+c
5
) and (x*,y*) =
1
2
( c
2
-c
4
, c
2
+c
4
-
c
5
). The optimal value
of the objective function is equal to c
5
/2.
Contours
Region for any value of z: x+y s c
1
+z; x+y > c
2
-z; -x+y sc
3
+z; -x+y > c
4
-z
B. Location-Allocation Problems
Notation
= total cost per unit time
n = number of new facilities
X
j
= (x
j
,y
j
), coordinate location of new facility j
P
i
= (a
i
,b
i
), coordinate location of existing facility i
w
ij
= cost per unit time per unit distance if new facility j interacts with existing facility i
z
ji
= 1, if new facility j interacts with existing facility i; z
ij
= 0, otherwise
g(n) = cost per unit time of providing n new facilities
Model
Minimize =
j
n
=
_
1 i
m
=
_
1
z
ji
w
ji
d(X
j
,P
i
) + g(n)
j
n
=
_
1
z
ji = 1
, i=1,...,m
n = 1,2, ..., m
Solution Procedure
1. Find number of possible combinations for a given value of n and m,
_
=

=
1
0
)! ( !
) ( ) 1 (
) , (
n
k
m k
k n k
k n
m n S
2. For each combination indicate which existing facilities are assigned to each new facility.
3. Use the single-facility procedure to locate each new facility (using rectilinear distances).
4. For each group (one new facility and its associated existing facilities) compute the trip costs.
5. Find total cost for all groups (trip cost plus cost of owning and operating the new facilities).
7.Scan all combinations and eliminate infeasible ones (those with overlapping service areas).
8.Find the minimal-cost feasible combinations for the value of n being considered,
n
.
9.Repeat the above procedure for n = 1, 2, ..., m, and select the global optimal from
1
,
2
, ...,
m
.
C. Quadratic Assignment Model
Notation
c
jhkl = cost of assigning new facility jto site k and new facility h to site l
c
jhkl =
v
jh
d
kl
+ v
hj
d
lk
Model
Minimize
j
n
=
_
1 k
n
=
_
1 h
n
=
_
1 l
n
=
_
1
c
jhkl
x
jk
x
hl
j
n
=
_
1
x
jk = 1
, k = 1,2,...,n
k
n
=
_
1
x
jk = 1
, j = 1,2,...,n
x
jk
= 0,1, for all jand all k
4. STORAGE PLANNING MODELS
101
Notation
q = number of storage locations;
n = number of products;
m = number of input/output points (docks);
S
j
= number of storage locations required by product j;
T
j
= number of trips in/out of storage for product j;
p
i
= percentage of travel in/out of storage to/from point i;
d
ik
= distance or time required to travel from point i to location k
Model
Minimize
j
n
=
_
1 k
q
=
_
1
T
S
j
j
i
m
=
_
1
p
i
d
ik
x
jk
Subject to
j
n
=
_
1
x
jk
1, k=1,...,q
k
q
=
_
1
x
jk
= S
j
, j=1,...,n
x
jk
= 0,1 for all j and all k
If f
k
=
i
m
=
_
1
p
i
d
ik
, the above objective function can be formulated as: Minimize
j
n
=
_
1
T
S
j
j
(
k
q
=
_
1
f
k
x
jk
) =
j
n
=
_
1
T
S
j
j
(f
1
x
j1
+f
2
x
j2
+ +f
q
x
jq
)
Procedure
(a) Consider the products according to the decreasing order of their Tj/Sjvalues
(b) Find the values of f
k
(expected distance traveled between location k and docks)
(c) Assign the locations to products according to their f-values from lowest to highest
5. AUTOMATED STORAGE AND RETRIEVEL SYSTEM DESIGN
Number of cranes =
throughput
(cycles / hour)x(efficiency)
Note: Use 32 cycles/hour for single-cycle cranes and 22 cycles/hour for double-cycle cranes. Also,
efficiency = 0.85.
Number of bays per row =
number of units to be stored
(number of rows)x(number of loads vertically stacked per bay)
Number of loads vertically stacked per bay =
height of storage building
(load height + clearance between stacks)
- 1
If the floor and ceiling clearance is specified in advance, it can be subtracted from the height of the
building. In this case, there is no need for the subtraction of 1 in the above formula. Light loads of less
than 2500 pounds require a 6-inch clearance. Heavier loads require 9 inches.
System width = (aisle unit) x (number of cranes)
The aisle unit should include twice the storage width (which is the same as the depth or length of the unit
load) plus the aisle width (which should accommodate the length of the load) plus clearance. Thus, it
should be at least equal to 3 times the length of the unit load plus 2 feet for clearance.
System length = (width of bay + clearance between bays) x (number of bays/row) + (crane clearance)
The crane run-out clearance is usually 25 feet.
6. PLANT LOCATION MODELS
102
Notation
m is the number of customers; n is the number of plant sites; c
ij
is the cost of supplying all demand by
customer i from a plant located at site j; f
j
is the fixed cost of locating a plant at site j; y
ij
is the proportion of
the demand from customer i supplied by a plant at site j; and x
j
is equal to 1 if a plant is located at site j, or
equal to 0 otherwise.
Model
Minimize z =
i
m
=
_
1 j
n
=
_
1
c
ij
y
ij
+
j
n
=
_
1
f
j
x
j
Subject to
i
m
=
_
1
y
ij
s mx
j
for j = 1, ..., n
j
n
=
_
1
y
ij
= 1 for i = 1, ..., m
y
ij
> 0 for all i,j
x
j
= 0 or 1 for all i,j

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