This paper develops a new mathematical model that integrates layout design and production planning to prescribe efficient multi-bay manufacturing facilities. The model addresses the need to distribute department replicas throughout the facility and extends the use of product and process requirements as problem parameters in order to increase process routing flexibility. In addition, the model allows for the consideration of practical engineering features such as alternate process routings, department replica capacities, and product flow production patterns. Computational results demonstrate that the run time required to solve our test problems is quite reasonable. Moreover, comparative results indicate that department replication can reduce material movement significantly while maintaining the existing production capacity.
University of Alberta School of Business Management Science Working Papers 02-3