Impact of demand uncertainty on facility layouts: distributed versus dynamic facility layouts

Thesis Type: Postgraduate

Institution Of The Thesis: Orta Doğu Teknik Üniversitesi, Faculty of Engineering, Department of Industrial Engineering, Turkey

Approval Date: 2016




Due to recent gradual decrease in product life cycles and lead times and increase in diversity and variability of demand, traditional methods based on product or process layouts are losing their effectiveness. This thesis investigates the effect of demand uncertainty on the choice of layout type in the stochastic integrated facility layout problems (IFLP), which aims to determine the material and product flows among (copies of) work centers and machines, in conjunction with their locations within the facility. Under demand uncertainty, we develop different performance measures, other than the cost of material handling system in these problems. We simulate the results of a promising heuristic in the IFLP literature in order to predict operational performance of system with varying demand levels. We then use the single-period performance estimates of alternative layout designs in a dynamic programming model to explore the effect of the relayout cost on the multi-period stochastic facility layout problems. Preliminary test are made for implementations of this procedure and results are given.