A simulated annealing heuristic for the dynamic layout problem with budget constraint (original) (raw)

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.