A simulated annealing heuristic for the dynamic layout problem with budget constraint

  • Authors:
  • Ramazan Şahin;Kadir Ertoğral;Orhan Türkbey

  • Affiliations:
  • Industrial Engineering Department, Engineering Faculty, Gazi University, Ankara, Turkey;Industrial Engineering Department, TOBB University of Economics and Technology, 06560 Söğütözü, Ankara, Turkey;Industrial Engineering Department, Engineering Faculty, Gazi University, Ankara, Turkey

  • Venue:
  • Computers and Industrial Engineering
  • Year:
  • 2010

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Abstract

Facility layout problem has been extensively studied in the literature because the total material handling cost can be a significant portion in the operational costs for a company and in the manufacturing cost of a product. Today's severe global competition, rapid changes in technology and shortening life cycle of products force companies to evaluate and modify their facility layout in a periodic fashion. This type of layout problems is categorized as the dynamic facility layout problem (DFLP). As a realistic dimension of the problem, one has to consider also the limited budget to cover the cost of changing the layout. In this study, we propose a simulated annealing heuristic for the DFLP with budget constraint, and show the effectiveness of this heuristic on a set of numerical experiments.