A Clustering-Sequencing Approach for the Facility Layout Problem

Abstract

This paper presents a new approach that solves the unequal-area facility layout problem by conceptually clustering facilities into groups and then sequencing them. The objective is to minimize the total material handling cost by placing the facilities, which have more interactions (in terms of the flow of materials) with the rest of the facilities closer to the centroid of the production floor to the extent possible. The developed methodology provides promising results.