Solutions for the constrained dynamic facility layout problem

Much of the research in facility layout has focused on static layouts where the material handling flow is assumed to be constant over the planning horizon. But in today’s market-based, dynamic environment, this assumption may no longer be true. Layout rearrangement may be required, for which available funds may be limited. This research investigates the facility layout problem under the two assumptions of changing demand and a constraint on the layout rearrangement funds. The problem is formulated, a new algorithm is proposed to solve the problem and it is compared to an extension of the old algorithm that has been used to solve the problem thus far. In addition, different factors that affect dynamic facility layout design and operation are statistically examined. The results indicate that the proposed algorithm has advantages over the old one and that some of the factors and their combinations can have significant effects on layout design and operation.