Facility Layout

Chapter 10
QUANTITATIVE
FACILITIES PLANNING MODELS

Tran Van Ly
Industrial Engineering and Management
International University
23/09/20 1
Email: tvly@hcmiu.edu.vn
Lecture outline
1. Introduction
2. Facilities Location Models
3. Special Facilities Layout Models
4. Machine Layout Models
5. Conventional Storage Models
6. Automated Storage and Retrieval Systems
7. Order Picking Systems
8. Fixed-path Material Handling Models
1. Introduction

• Presents a number of prescriptive models

for solving a variety of facility location
and layout problems
• And then, a number of descriptive and
precriptive models that can be used to
design a warehouse or storage system is
introduced.
 2. Facility Location Models

• Facility Location Problem is categorized on

– the number of new facilities,
• Single-facility location
• Multi-facility locations

– the basis of the distance between facilities

• Rectilinear distance
• Straight-line distance
• Chebyshev distance
• Actual distance
• Distance
• Distance
• Distance
• Distance
• Distance
• Distance
• Distance
• Distance
2.1 Rectilinear Facility Location

•X=(x,y): Location of the new facility

•Pi =(ai, bi): Location of existing facility i, i=1, 2,.., m
•wi : “weight” associated between the new facility and existing facility i
• d(X, Pi) = Distance between the new facility and the existing facility i

• Optimization opportunities
m
min f ( x )   w d(X ,P )
i 1
i i

• The distances are measured by

• Hence the single-facility minisum location problem is formulated
m m
min f ( x )  w
i 1
i X  a i   w i Y  bi
i 1

• The optimum value of x and y can be obtained independently

 Rectilinear single-facility (Example 10.1)
• Ordering the x coordinates and solving for the optimum x-coordinate

• Ordering the y coordinates and solving for the optimum y-coordinate

 Fig 10_01: Optimum location for a single-facility, rectilinear minisum location problem

• resulting from the location X= (3,4) is

 Iso-cost contour lines (Ex 10.2)
•What if we have only a few of alternative locations?
Suppose, it is not possible to place new machine at (3, 4). Instead, there are
only three feasible locations (3,5), (4,5), and (2,4). Which is preferred?

• Step 1: Plot the locations of the existing • Step 2: Draw horizontal and vertical
facilities and designate the weights lines through the coordinate points
• Step 3: Sum the weights for all
existing facilities having the same x-
coordinate and the same y-coordiante
• Step 4: Determine the net pull
along the x-coordinate and the y-
coordiante
• Step 5: Determine the slopes. The slope of the contour lines equals the negative of the
ratio of the net horizontal pull and the net vertical pull
• Step 6: Construct the iso-cost contour line by drawing a line through that point with
the calculated slope.
 Single-facility, rectilinear minimax
location problem

• To obtain the minimax solution, we let

• Optimum solutions to the minimax location problem are all points on a line
segment connecting the point

Read the example 10.7

 Multiple-facility, rectilinear minisum
location problem
Xj=(xj,yj): Location of the new facility j, j = 1, 2, …, n
Pi =(ai, bi): Location of existing facility i, i=1, 2,.., m
wji : “weight” associated with travel between new facility j and existing facility i
vjk: “weight” associated with travel between new facility j and new facility k
d(Xj, Pi) = Distance between new facility j and existing facility i
d(Xj, Xk) = Distance between new facility j and new facility k

Or

Subject to

Read example 10.5 and 10.6

 Multiple-facility, rectilinear minimax
location problem

Where:
gji and hjk: fixed “costs” associated with new- and existing- facility pairs
and pairs of new facilities, respectively. i=1, 2,.., m. and 1=j  k =n

Read example 10.8

2.2 Euclidean-distance Facility Location

a. Single-facility, squared euclidean minisum

location problem

Taking the partial derivatives of f(x, y):

Example 10.9
Return example 10.1, assume the cost of material movement to be
proportional to the square of of the straight-line distance between the new
machine tool and the existing machine tools. The proportionality constants
are respectively, 10, 20, 25, 20 and 25.

The optimum location for the new machine tool is as follows:

b. Multi-facility, squared euclidean minisum location problem

c. Single-facility, euclidean minisum location problem

d. Multi-facility, euclidean minisum location problem

e. Single-facility, euclidean minimax location problem

f. Multi-facility, euclidean minimax location problem

3. Special Facility Layout Models
3.1 Quadratic Assignment Problems

Subject to

Where:cjkhl: the cost of assigning new facility j to site k when new facility h
is assigned to site l.
 QAP (Example 10.20)

B A B

B C
A B
D
A
The pairwise exchange results for the initial solution

6: 30
6: 12
4: 8
6: 18
4: 12
5: 20
8: 40
The pairwise exchange results for the first improved solution

Assignment – based lower bound

3.2 Warehouse Layout Models
 Warehouse Layout Models

Subject to
 Warehouse Layout Models
• Procedure to minimize fk (expected distance traveled)
+ number products according to their activity-to-space
ratio, such that
T1/S1  T2/S2  …  Tn/Sn
+ compute expected distance traveled fk for all storage
locations,
+ assign product 1 to the S1storage locations having the
lowest fk values, next assign product 2 to the S2 storage
locations having the second lowest fk, etc.
 Example 10.21
Designing a warehouse layout with 4 docks
Consider the warehouse of which the layout is given below. Storage bays are of
size 20x20 ft. Docks P1 and P2 are for truck delivery; docks P3 and P4 are for rail
delivery. Dedicated storage is used.
Sixty percent of all item movement in and out of storage is from/to either P1 or P2
with each dock equally likely to be used. Forty percent of all item movement in and
out of storage is equally divided between docks P3 and P4. Three products, A, B and
C, are to be stored in the warehouse with only one-type product stored in a given
storage bay. Product A requires 3600 ft² of storage space and enters and leaves
storage at a rate of 750 loads per month; product B requires 6400 ft² of storage
space and enters and leaves storage at a rate of 900 loads per month ; product C
requires 4000 ft² of storage space and enters and leaves storage at a rate of 800
loads per month. Rectilinear travel is used and is measured between the centroids of
storage bays.

p1 p3

p2 p4
Solution
-Compute distance dik and the the fk ,
e.g: f29 = 0.3*120+0.3*120+0.2*100+0.2*80 = 102
106 110 104 118 122 126 130 134

86 90 94 98 102 106 110 114

P1 P3
76 80 84 88 92 96 100 104

P2 P4
86 90 94 98 102 106 110 114

105 110 114 118 122 126 130 134

-Compute the activity-to-space ratio

activity, Activity-to-space ratio,

product, volume Number of
Tj Tj/Sj order
j (ft2) bay, Sj
(loads/month)

A 3600 750 9 83.33 (1)

B 6400 900 16 56.25 (3)
C 4000 800 10 80.00 (2)
- assignment step
 4. Machine Layout Models
XPi =(xj,yj): Location of pickup point of machine i, i = 1, 2, …, n
XDi =(ai, bi): Location of delivery point of machine i
wi : width of machine i oriented parallel to the aisle
aij: minimum clearance between machine i and j
cij: cost per trip per unit distance from machine i to j
fLij = total loaded material handling trips from machine i to machine j
fEij = total empty (deadhead) material handling trips from machine i to machine j
- The single-row model formulation is as follows

The objective function gives the total cost of material handling where

Subject to

j = i +1, …, n for loaded trips

j = i +1, …, n for (empty) deadhead trips

• Procedure for the Relative Placement Cost - RPC
Step 1.
Determine the first two machines to enter
the layout by computing max {cij fij}.
The rationale behind the selection of the
machine pair ij with the maximum value of
cij fij is that this value results in the
maximum cost increase when the distance
between them is set farther apart.
The solution is denoted as {i *, j *}.
• Procedure for the Relative Placement Cost - RPC
Step 2.
Place i* and j * adjacent to each other.
Since the P/D points are located at the
midpoint of the machine edge along its
width, there would be no difference in total
cost between the placement order i * j * and
the order j * i *.
• Procedure for the Relative Placement Cost - RPC
Step 3.
The next step is to select the next machine,
denoted by k*, to place in the layout and to
determine where to locate this machine
relative to those that are already in the
layout.
The placement order is either k* i * j * or i * j
* k*. The selection of k* is based on
evaluating the relative placement cost,
RPC, of setting machine k to the left or to
the right side of the set of machines already
in the layout.
• Procedure for the Relative Placement Cost - RPC
Step 3 (Cont.)
The evaluation function is

where A is the set of all machines already

assigned specific locations and U is the set
of unassigned machines. The first
summation gives the cost of placing
machine k to the left, and the second
summation gives the cost of placing
machine k to the right of all assigned
machines.
 Example 10.22
Location four machines along one side of an aisle
Consider the problem of locating 4 machines along an aisle. There are a total of 4! = 24 ways of
arranging these 4 machines. Let cij = 1 and aij = 1. The machines dimensions are

The loaded material handling trips between machines are

The total flow-between matrix is

Steps 1 and 2. Since the maximum {fij} value is 19, we select machines 2 and 4 to
enter the layout. At this point, the placement order is not important. We arbitrarily
select the order 24. Thus, A {2, 4} and U {1, 3}.
 Example 10.22
Step 3. Location four machines along one side of an aisle
For this step, we will evaluate the following placement orders: 124, 24 1,
32 4, and 243.
For placement order 124,
f12d12 + f14d14 = 18(3.5) + 11(8.5) = 156.5
For placement order 24 1,
f21d21 + f41d41 = 18(9.5) + 11(4.5) = 220.5

For placement order 3 24,

f32d32 + f34d34 = 12(4.5) + 17(9.5) = 215.5
For placement order 24 3,
f23d23 + f43d43 = 12(10.5) + 17(5.5) = 219.5

Since the minimum relative placement cost is 156.5, we select the placement
order 124.
 Example 10.22
Location four machines along one side of an aisle
Step 4.
5. Conventional Storage Models
1 The Basic Block Stacking Model
SBS = average amount of floor space required
during the life of a storage lot
Q = size of a storage lot, measured in unit loads
W = width of a unit load
c = clearance between adjacent storage rows
L = length or depth of a unit load
A = width of the storage aisle
z = storage height or levels of storage, measured
in unit loads
x = depth of a storage row, measured in unit
loads
y = integer number of storage rows required to
accommodate Q unit load, given x and z =
smallest integer, greater than or equal to Q/xz =
[Q/xz] of a storage row, measured in unit loads
= average number of storage rows required
over the life of a storage lot.
Assuming a uniform withdrawal of unit loads, the average number of storage rows is given by

Since the sum of the integers 1 through n-1 equals n(n-1)/2, the  is given by

Hence the SBS is given

Read example 10.23

2. Review: Unit load storage alternatives

• block stacking
• deep lane storage
• single-deep selective pallet rack
• double-deep selective pallet rack

Fig. 1-41 Pallet rack storage. (a) Single-deep rack.

(b) Double-deep rack.
6. Automated Storage and Retrieval Systems,
AS/RS

Fig. 10-45 Typical AS/RS configuration

6.1 Sizing and cost Estimation
Notation The width of an AS/RS aisle with in-
rack sprinklers is estimated
W = 3(x+6”)

Without in-rack sprinklers, the width

of an AS/RS aisle:
W = 3(x+4”)

The length of the aisle, L, and the

height of the aisle, H, are computed:
L = m(y+8”)
H = n(z+10”)

The dimension of building can be

estimated
BH = H+48”
BW = W+24”
BL = L + 

Where , for values of y b/w 24” and

54”, can be estimated

Read example 10.32

6.2 S/R (storage/retrieval) machine cycle time
L = The rack length (in feet)
H = the rack height (in feet)
hv = the horizontal velocity of the S/R machine (in feet per minute) The expected travel times:
vv = the vertical velocity of the S/R machine (in feet per minute)
th = time required to travel horizontally from the I/O point to the
farthest location in the aisle (th = L/hv minutes)
tv = time required to travel vertically from the I/O point to the farthest
location in the aisle (tv = H/vv minutes)
Our goal is to first determine
E(SC) = the expected travel time for an SC (single
command) cycle
E(TB) = the expected travel time from the storage location to The expected cycle times:
the retrieval location during a DC (dual command) cycle
E(DC) = the expected travel time for an DC cycle
Let:
T= max(th, tv)
Q = min(th/T, tv/T)
Where:
T: the scaling factor, designates the longer (in time) side of
the rack
Q: the shape factor, designates the ratio of the shorter (in
time) side to the longer (in time) side of the rack., 0< Q  1
T = the expected SC cycle time; T = the expected DC
Example 10-37 and example 10-38
Solution:
b. S/R machine utilization:
a. Determine expected cycle times:
6.3 Expected throughput of AS/RS

Fig. 10-46 Control logic for alternative strategy

7. Order Picking Systems
7.1 In-the-Aisle Order Picking
It is empirically shown in [7] that the expected
time required to travel from the P/D station, make
n stops (or picks) in the aisle, and return to the
P/D station can be estimated by the following
expression:
E(P, X1, X2, . . ., Xn, D) 

E(P, n, D) 

For 3  n  16, using Chebyshev metric

Example 10-40 and 10-41

Solution:

Determine maximum throughput:

Fig. 10-47 The four –band heuristic. (Due to

Chebyshev travel, the solid lines do not necessarily
reflect the travel path of the S/R machines
7.2 Using band heuristic to sequence the pick points
Example 10-43
Consider the same data given for example 10.40
Table 10-21 “Optimum” number of bands for the Band Heuristic

Example 10-45. Optimum rack shape for the band heuristic

Table 10-22 Alternative Configurations for example 10-45
7.3 Designing an in-the-aisle OP system
Then the first –cut design algorithm is
described as:
- step 0: Set M = [Rt /60]
- step 1: if M(60M-Rt)2 ≥ (Rqu)2, then go
to step 3. Otherwise go to step 2
- step 2: let M  M+1, go to step 1
- step 3: STOP, M is the minimum
number of aisles