UNIVERSITY OF ENGINEERING AND TECHNOLOGY

PESHAWAR,
JALOZAI CAMPUS.
SUBMITTED BY: HASHIR JAVED
SUBMITTED TO: ENGR. MUHAMMAD
ZUBAIR
COURSE: INDUSTRIAL
FACILITIES DESIGN
REG ID: 19JZIND0112
LAB NO: 06
SEMESTER: 7th SEMESTER
DEPARTMENT: INDUSTRIAL
ENGINEERING
DATE: 26 OCTOBER,2022

LAB NO# 06:

To analyze the different Facility Locations with unlimited capacities and expected life
using the Heuristic approach:

OBJECTIVES:
The objective of this lab are:
 To Learn about the Heuristic Approach.
 To solve a problem using Heuristic Approach.

INTRODUCTION:
A heuristic, or heuristic technique, is any approach to problem-solving that uses a practical
method or various shortcuts in order to produce solutions that may not be optimal but are
sufficient given a limited timeframe or deadline.
Heuristics facilitate timely decisions. Analysts in every industry use rules of thumb such as
intelligent guesswork, trial and error, the process of elimination, past formulas, and the analysis
of historical data to solve a problem. Heuristic methods make decision-making simpler and faster
through shortcuts and good-enough calculations.
There are trade-offs with the use of heuristics that render the approach prone to bias and errors in
judgment. The user’s final decision may not be the optimal or best solution. Or the decision made
may be inaccurate, and the data selected might be insufficient (thus leading to an imprecise
solution to a problem).

PROBLEM:

PROCEDURE:
 First we open the excel and enter the data.

 Then we make another table for demand cost and multiply the demand with the cost of the
location as shown in figure.
 Now we make another table to the find the first and Second minimum from the demand
cost table.
For First minimum.

For second minimum.

 Now find the difference between two minimum and also subtract them.
  Now we make table for total payment made and for this we use PMT command.

 Now in the next step we will find the feasible locations to assign the facilities and customer.
From the minimum table we will find the location.

 Add the Fixed cost row from the Payment table. Then take the sum to get the net savings.
 We select the location according to the largest net savings which is location D.

 Now we will find the next location. Make another table and use the IF command to find the
next location.

 Calculate the sum for net savings. We will select the location according to the largest net
savings which is location E.
 Repeat the same step to find next location.

 We see that the location is repeat so we will stop here. We get the two feasible locations for
the customers. At last we placing the customer accordingly to the locations selected.

CONCLUSION:
In this lab we learned about Heuristic Approach. Also, we used this method to solve a problem
and find the facility location.