A continuous approach to considering uncertainty in facility design

This paper presents a formulation of the facilities block layout problem which explicitly considers uncertainty in material handling costs on a continuous scale by use of expected values and standard deviations of product forecasts. This formulation is solved using a genetic algorithm meta-heuristic with a flexible bay construct of the departments and total facility area. It is shown that depending on the attitude of the decision-maker towards uncertainty, the optimal design can change significantly. Furthermore, designs can be optimized directly for robustness over a range of uncertainty that is pre-specified by the user. This formulation offers a computationally tractable and intuitively appealing alternative to previous stochastic layout formulations that are based on discrete scenario probabilities. 2004 Elsevier Ltd. All rights reserved.

• Type: Journal
• Year: 2006
• Where: COR
• Authors: Bryan A. Norman, Alice E. Smith
• Keywords: Block Layout, COR 2006, Expected Values, Total Facility Area