FP II Single

Facilities Planning
Lecture 7-8:
Layout Planning
Algorithmic Approaches
Quadratic Assignment
Problem
 Departments are to be assigned to
predetermined locations (sites) in the floor
plan.
 Each department is treated as a unit square,
so that any department can be assigned to
any site.
 This is a quadratic assignment problem,
since the “cost” of assigning a department to
a particular location depends on the
locations of the other departments.
11.07.2010 Dr. Erkan Bayraktar 2
...
 Mathematical Formulation

Quadratic Assignment
Problem
 Optimal solution procedures are

difficult to solve for realistic size
problems. Therefore, two types of
heuristic procedures are considered.
 Construction Procedure
 Improvement Procedures

Evaluation of Facility Designs
 Which layout is best?

 Is layout A better than Layout B?
 Several Common Methods for Block Layouts
 Distance Based Scoring
 Requires flow and distance
 Adjacency Based Scoring
 Requires subjective AEIOU relationships
 Multi-Objective Scoring
 Many methods available
 Weighted factor scoring

Distance Based Scoring
 Volume-Distance product
 Distance usually measured rectilinearly, between centroids

 Assumes that the material flow system has already been
specified
 Assumes that the variable flow cost is proportional to distance
 Distance often depends on the aisle layout and material handling
equipment
 Can also add a cost term ($/dx) to convert to $

How should you measure
distance?
 Most common is “rectilinear” distance
between centroids
 d(X, P) = |x - a| + |y - b|
 Absolute difference in x direction PLUS absolute
difference in y direction
P = (a, b)
X = (x, y)
Finding Centroids (x*, y*)

Fun with Centroids!
 Centroid-to-centroid distances can be

minimized easily, but may produce
unrealistic facilities!
Layout Evaluation: Distance-
based scoring Example

Example – Each dept. is 100’ x 100’

Can you find a better
arrangement?
 Keep same department and facility

shapes.

Adjacency-Based Scoring
 Score arbitrarily-defined if areas are “adjacent”
 Requires definition of “adjacent”
 Share a common border
 Centroids within certain distance
 Can penalize if “X” relationship areas are adjacent

Example - Revisited

Multi-Objective (weighted
Factor) Scoring
 Useful in group evaluation situations

 Must decide on weights
 While totally subjective, allows for fair
comparisons
Algorithmic Approaches
 SLP is “informal”
 Does not provide a formal procedure or algorithm
for critical steps.
 Algorithm: a precise rule (or set of rules) specifying
how to solve some problem
 Has an objective function
 Amenable to computer implementation
 Types of input
 Qualitative “flow” data (i.e. relationship chart)
 Quantitative data (i.e. from-to chart, flow-between)
 Both

Algorithmic Approaches:
Classification of algorithms
 Based on objective  Algorithms must
function address two issues:
 Distance based  The order of
 Adjacency based placement of
departments in the
 Format of layout relationship diagram
representation (or unit block plan)
 Discrete representation  The relative
 Continuous representation locations of the
departments
 Primary function
 Improvement
 Construction
Based on objective function

Distance-based Algorithms:
Objective function
 Minimize flow * distance
 Called a “distance-based” objective
 Distance is measured rectilinearly from the department centroid
 Input is a from-to chart
 fij = amount of flow (or, number of trips or unit loads) between

departments i and j
 cij = cost of moving a unit load between departments i and j
 dij = distance between departments i and j

Adjacency-based Algorithms:
Objective function
 Maximize adjacency
 Input is an activity relationship chart
 Sum of all adjacent relationship values
 Easy to use and intuitive
 But disregards distance between non-adjacent departments
 Means you can generate layouts with similar scores but vastly
different travel distances
xij  1, if department s i and j are adjacent

0, otherwise

Adjacency-based Algorithms ...
Normalized adjacency score

Or
Efficiency Rating

Based on format of layout

representation
Layout Representation Format
 Discrete
 The area of each department is rounded off to the nearest
integer number of grids.
 A smaller grid size yields a finer resolution and gives more
flexibility in department shapes, but
 Results in a larger number of grids which complicates
computations. Why?
 Continuous
 Does not use a grid
 More flexible but more difficult to use
 Usually limited to rectangular building and departments

Graphical Representation
 “Points and lines” representation is not

convenient for analysis

(cont.)
 Most procedures employ a “unit area
square” representation as an approximation
 Space available and space required for each
activity are expressed as an integer multiple of
the unit area.

(cont.)
 Unit Square Area approximation can also be

represented by a two dimensional array or
matrix of numbers
 Easy to manipulate (e.g., determine adjacency)
but difficult to visually interpret

Examples of Split and Unsplit
departments

Factory CAD/Flow/Plan
 AutoCAD based add-on

 Has multiple applications
 CAD: drawing templates
 FLOW: evaluation of material flow; manual SLP
type manipulation
 PLAN: layout alternative generation
 FactoryPLAN
 Uses Spiral-type algorithm to generate
alternative layout options
FactoryCAD
Overlay to
AutoCAD

Based on Primary function:

Improvement based
Construction based
Classification of Algorithms:
Primary functions
 Improvement-based
 Start with an initial layout and try to improve it through
incremental changes
 Example
 Pair-wise exchange
 CRAFT (Computerized Relative Allocation of Facilities
Technique)
 Construction-based
 Develop ‘from scratch' and progressively build layout
 Example
 ALDEP (Automated Layout Design Program)
 CORELAP (Computerized Relationship Layout Planning)

Improvement-based:
Pairwise Exchange Method (i)
 Compute the total cost of existing layout based on
initial from-to chart and distance matrix (c = f *d)
 Exchange two departments
 Recompute the total cost
 Consider all pairwise interchanges and evaluate the
cost of each
 Perform the one that yields the greatest reduction in
total cost
 Continue until no further improvement is obtained
 Not guaranteed to find the optimal solution but will
be locally optimal.
 The method assumes departments areas are equal
Improvement-based:
Pairwise Exchange Method (ii)

Improvement-based:
Pairwise Exchange Method (iii)
 TCABCD = 5(15)+8(35)+10(50)+5(20)+3(35)+2(15)=1090
 TCBACD = 5(15)+8(20)+10(35)+5(35)+3(50)+2(15)=940
 TCCBAD = 5(20)+8(35)+10(15)+5(15)+3(35)+2(50)=810
 TCDBCA= 5(35)+8(15)+10(50)+5(20)+3(15)+2(35)=1010
 TCACBD = 5(35)+8(15)+10(50)+5(20)+3(15)+2(35)=1010
 TCADCB= 5(50)+8(35)+10(15)+5(15)+3(35)+2(20)=900
 TCABDC= 5(15)+8(50)+10(35)+5(35)+3(20)+2(15)=1090
C-B-A-D
Improvement-based:
Pairwise Exchange Method (iv)
 Remarks:
 Not guaranteed to yield the optimal layout
(heuristic)
 It is possible to cycle back
 Symmetric layout arrangements are possible
 Only considers departments with equal sizes
(different size -> CRAFT)
 BE CAREFUL! on constructing from-to chart

Improvement Algorithms
 Too many degrees of freedom to devise a good
method for modifying the block plan.
 Most all improvement algorithms limit the kinds of
changes that are permitted.
 Basic procedure
 CHOOSE a pair (or triple) of activities
 ESTIMATE the effect of exchanging them
 EXCHANGE if the effect is to reduce the total cost
 CHECK to be sure the new layout is better
 Repeat Until no more improvements are possible.

Improvement Algorithms
 To CHOOSE a pair of activities
 Activities that have the same area, or
 Activities that share a common boundary.
 There are many possibilities for EXCHANGE when
the areas are not equal.
 Generally, the shape ratio and corner count rules are
violated, therefore, manual adjustment is sometimes
required.
 ESTIMATE the value of the exchange by comparing
the cost if the two centroids are switched.
 However, this estimate will not necessarily be correct for
unequal area activities.
CRAFT
Computerized Relative Allocation

of Facilities Technique
Download from:
http://www.me.utexas.edu/~jensen/ORMM/frontpage/jensen.lib/index_omie.html
CRAFT (Computerized Relative
Allocation of Facilities Technique)
 Perhaps the most famous improvement algorithm

 First computer-aided layout algorithm (1963)
developed based on the study of Armour & Buffa
(1933)
 Improvement-type layout algorithm
 Inputs
 Existing block layout, Flow matrix (from-to)
 Distance metric used is the rectilinear distance between
department centroids.
 Cost per unit distance matrix (optional)

CRAFT
 The main objective behind CRAFT is to minimize
total transportation cost:
 Where Transportation cost = flow * distance * unit cost
 Requires the assumptions that:

 Move costs are independent of the equipment utilization.
 Move costs are linearly related to the length of the move.

Steps in CRAFT
1. Determine department centroids.
2. Calculate rectilinear distance between centroids.
3. Calculate transportation cost for the initial layout by multiplying
 From-To (flow) chart,
 Unit cost matrix, and
 From-To (distance) matrix
4. Improve the layout by performing all-possible two or three-way
exchanges
 Consider department exchanges of either equal area departments or
departments sharing a common border.
 Determine transportation cost of each departmental interchange.
 Select and implement the departmental interchange that offers the
greatest reduction in transportation cost.
5. Repeat the procedure for the new layout until no interchange is able
to reduce the transportation cost.

Example 1: CRAFT

Example 1: Possible Swaps
 CRAFT does not actually swap and re-calc centroids
 Swaps centroids and looks for best improvement
 Iteration #1 - Possible Swaps
 A-B Cost = 2650, C-D Cost = 2650, A-C Cost = 2270 *
 Iteration #2 - Possible Swaps
 C-B Cost =1950, C-A (already did this), A-D Cost=1950
 Break tie abitrarily and select A-D swap, actual Cost=1870
 Iteration #3 – Possible Swaps
 C-B Cost =2270, A-D (already did this one), A-C Cost =2500
 No improvement found
 STOP

Example 1: Improved Layout

Example 2:

Example 2: CRAFT
 Initial Layout
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
1 A A A A A A A A A A G G G G G G G G
2 A Receiving D. A G
Shipping D.
G
3 A A A A A A A A A A G G G G
4 B B B B B C C C C C E E G G G G G G
5 B B C C E E E E E E E E
6 B B C C C C C E E E E E E E E
7 B B B B B D D D D F F F F F F F E E
8 D D D D D D D F F F
9 D D F F F F F F
10 D D D D D D D D H H H H H F F F F F
Dummy Department

 New Layout
 after exchanging E and F
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
2 A Receiving D. A G G
3 A A A A A A A A A A G G G Shipping G
D.
4 B B B B B C C C C C F F G G G G G G
5 B B C C F F F F F F F F
6 B B C CC C C F F F F F F F
7 B B B B B D D D D E E E E E E F F
8 D D D D D D D E E F F
9 D D E E E E E E F F
10 D D D D D D D D H H H H H E E F F F

Example 2: Contd.

Final Layout
After
exchanging
B and C
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
2 A Receiving D. A G G
Shipping D.
3 A A A A A A A A A A G G G G
4 C C C B B B B B B B F F G G G G G G
5 C C C B B F F F F F F F F
6 C C B B B B B B F F F F F F F
7 C C C C B D D D D E E E E E E F F
8 D D D D D D D E E F F
9 D D E E E E E E F F
10 D D D D D D D D H H H H H E E F F F
Manual Adjustment on CRAFT
Output

50
CRAFT Facts
 A heuristic solution procedure for the more
generalize “quadratic assignment problem”
 CRAFT only exchanges departments that are
 Adjacent (share at least one common edge)
 Have equal areas
 Adjacency is a necessary but not sufficient criteria
for swapping departments
 CRAFT simplistically assumes cost is linearly
related to distance;
 1’=1$ means 100’=$100
 In real life, you have fixed cost of investment in MH
 0’=$100 1’=$101 100’=$200

Limitations in Exchanging
11.07.2010 Exchange dept.#2Dr.with dept. # 1,3,and 4

Erkan Bayraktar 52
CRAFT Facts...
 Quality of final solution depends on the initial layout
 CRAFT is a path-oriented method so the final layout is
dependent on the initial layout.
 Therefore, a number of different initial layouts should be
used as input to the CRAFT procedure.
 CRAFT allows the use of dummy departments to
represent fixed areas in the layout.
 Final solution may be locally optimal, not globally
optimal
 Many derivatives have emerged
 MCRAFT, BLOCPLAN, MULTIPLE, etc.
 Mixed Integer Programming Models

MICRO-CRAFT (MCRAFT)
MICRO-CRAFT (MCRAFT)
 PC version of CRAFT allowing non-adjacent exchanges
 Can exchange any two departments whether they are
adjacent or not
 Shifts other departments “automatically” if the exchanged
departments are not adjacent and equal sized
 Uses “bands” and assigns grid within band to a department
 MCRAFT requires the user to specify
 Facility dimensions (rectangular width X length)
 Number of bands
 Layout vector or fill sequence
 Computes grid size, number of rows and columns
 Procedure
 Starts from top-left corner of building
 Sweeps bands in a serpentine fashion

MCRAFT – Micro CRAFT
 Horizontal sweep patterns are used to
 place departments (similar to ALDEP)
 and move departments while two non-adjacent
unequal-size departments are being exchanged
 Layout is specified by a sequence of departments

MCRAFT
1. After the band width is set, MCRAFT requires a vector (the
order) of the departments as an initial layout.
 Based on this vector, it locates the departments following the
serpentine flow directions
2. A swap/exchange selection procedure similar to that of

CRAFT is implemented.
 Not necessarily limited to adjacent or equal-size departments!!
3. If any improving exchange is selected, then the two

departments are swapped using a shifting procedure of the
other departments.
4. REPEAT 3 and 4 until no improvement can be made.

MCRAFT - Example
 Same problem data as in the CRAFT

example
 Facility dimensions:
 360ft X 200ft
 Number of Bands: 3
 Initial Layout Vector: 1-7-5-3-2-4-8-6

MCRAFT – Example, initial
layout

MCRAFT – Example final
layout

MCRAFT - Comments
 Smoother shapes compared to CRAFT
 Facility shape is a restriction
 Allows multi-floor layout planning
 Uses a From-To chart for input flow data
 Band widths are equal
 A department may occupy two bands
 Unless departments are already arranged in bants, it will not
capture the initial layout properly.
 More exchange alternatives. The number of alternatives
increase exponentially with the number of departments
 Fixed departments may cause problems
 Fixed department may move
 MCRAFT’s primary strength is also its primary weakness

BLOCKPLAN
BLOCPLAN
 Like MicroCRAFT, arranges departments in bands
 Uses a relationship chart as well as a from-to chart
 Can be used only one at a time
 Objective function: Measures layout “cost” using
 distance based, or
 adjacency-based, or
 REL-DIST
 Number of bands determined by the program
 Usually two or three bands
 Band widths may vary
 Departments contained in only one band
 departments are rectangular
 Uses continuous layout representation
 Can do both construction and improvement
Example 6.1

Flow-Between and Relationship Chart

Example
E=0.63
11.07.2010 Dr. Erkan Bayraktar
REL-DIST = 288766
Example – Contd.
E=0.63
REL-DIST = 2708
A=10, E=5, I=2, O=1, U=0, X= -10

MULTIPLE
MULTIPLE / LayOPT
 MULTI-floor Plant Layout Evaluation
 Can also be used for single floors
 Similar to CRAFT
 Identical Objective function
 Not restricted to rectangular shapes
 Discrete representation
 Improvement-type algorithm
 Uses From-To chart
 Uses two-way exchanges
 Sweep patterns are used to place departments in layout
 Sweep pattern is based on space filling curve (SFC) concept
 Many alternative SFCs can be created
 Layout is specified by a sequence of departments

MULTIPLE...
 Pairwise exchange is performed on the sequence
position of departments
 Like MicroCRAFT and BLOCPLAN (and unlike CRAFT),
MULTIPLE can exchange non-adjacent departments
 Not restricted to equal size departments
 Layout vector denotes order of department
placement
 Fill sequence is determined by Space Filing Curve
(SFC)
 Can exchange departments by changing their position in
layout vector
 SFC can bypass fixed departments or areas
 SFC can move around a fixed department

Example

Department shapes

Department shapes
 Ratio of its longer side to its shorter side

 Divide the area of smallest enclosing
rectangle (SER) to the area of department.
 Divide its perimeter into its area
 Ideal shape: S*=P/A=4( A )/A
 Normalized shape factor: s/s*
 Reasonable shapes 1.0< F < 1.4

Layout Construction Algorithms
Construction Algorithms
 For i = 1 to n
SELECT an activity to be placed
PLACE the selected activity in the layout
End For
 Selection rules
 Choose the next activity having the largest number of “A”
(“E”, “I”, etc.) relationships with the activities already in the
layout. Break ties randomly.
 Supplement above procedure with TCR for choosing first
department and breaking ties.
 Consider “flow cost chart” and user specified placement
priorities.

 Placement Rules
 Contiguity Rule
 If an activity is represented by more than one unit area
square, every unit area square representing the activity must
share at least one edge with at least one other unit area
square representing the activity.
 Connectedness Rule
 The perimeter of an activity must be a single closed loop that
is always in contact with some edge of some unit area
square representing the activity.
 The followings are infeasible shapes for activities.

 Placement Rules (cont.)
 Five “basic” shapes for an activity represented
by 4 unit area squares.
 Determining possible shapes becomes nontrivial

for activities with more than 5 unit area squares,
and some of the shapes have bizarre
configurations.

 Placement Rules (cont.)
 Therefore, additional rules are often used.
 Enclosed Voids Rule
 No activity shape shall contain an enclosed void.
 Shape Ratio Rule
 The ratio of a feasible shape’s greatest length to its greatest
width shall be constrained to lie between specified limits.
 Corner Count Rule
 The number of corners for a feasible shape may not exceed a
specified maximum.
 Given an activity’s shape there are a large number of
alternative placements for it in a layout, including different
locations and mirror images and rotations.

 Bounded placement procedures
 Accept a specified facility configuration and fit the activities
into the facility.
 May not be able to enforce all of the activity shape rules.
 E.g., ALDEP
 Free placement procedures
 Create a layout without regard to the resulting facility
configuration.
 May produce layouts requiring considerable adjustment to
conform to conventional building configurations.
 E.g., CORELAP

ALDEP
Automated Layout DEsign

Program
ALDEP
 Automated Layout DEsign Program by Seehof and
Evans (1967)
 Construction algorithm
 Same basic data input requirements and objectives
as CORELAP
 Relationship chart
 Department areas
 Additionally, sweep width
 Block Size, Minimum acceptable closeness rating (MACR)
 Arbitrarily selects first department
 Allows fixed departments
ALDEP- Layout Construction
 First department selected randomly
 Next department selected based on relationship
with first
 If more than one with same relationship, choice is random
 If no departments with minimally acceptable closeness
relationship (MACR) exist, choice is random
 Place first department in the upper left corner and
extend downward.
 Develop layout using serpentine space filling curve.
 Additional departments begin where the previous
one ended
 Sweep width < area of smallest department
 Why?
Sweep Width<Area of Smallest Dept
Split Department

 Sweep Pattern
 Can accommodate a variety of building shapes and

irregularities.
 Scoring Mechanism: Adjacency Score
 ALDEP rates the layouts by determining an adjacency
score by assigning values to the relationships among
adjacent departments.
 A = 64, E = 16, I = 4, O = 1, U = 0, X = -1024

ALDEP-Example

ALDEP - Layout

Example

 Scoring Procedure
Adjacent
Departments Relationship Value Rating
4-2 and 2-4 E 16 32
4-1 and 1-4 I 4 8
2-1 and 1-2 E 16 32
1-6 and 6-1 U 0 0
6-5 and 5-6 A 64 128
6-7 and 7-6 E 16 32
5-7 and 7-5 I 4 8
7-3 and 3-7 U 0 0
Total 240
Example:
 Excel example:
 ALDEP

CORELAP
COmputerized RElationship
LAyout Planning
CORELAP
 COmputerized RElationship  Tie-breaker is area size
LAyout Planning by Lee and  Next department chosen by
Moore (1967) the relationship with first
 Construction algorithm Inputs department
similar to ALDEP  Start with A relationships
 Relationship chart  If no A’s, then E’s, I’s, etc.
 Number of departments  Calculate the placement
 Area of each department rating
 Weight of REL chart entries  Based on relationship
 Calculates a total closeness weights
rating (TCR) from the  Sum of weights of
relationship chart adjacent departments
 Department with highest TCR  Tie breaker is boundary
is placed in the center length

Algorithm:
 Compute Total Closeness Rating (TCR)
 A=6 E=5 I=4 O=3 U=2 X=1
 Highest TCR placed into center of layout
(rect. shape)
 Search for next dept to enter as one with A,
then E, etc and use TCR’s to break ties
(Highest TCR, Largest Area, Lowest Dept.
Number (random))
8 7 6
 Use “placing rating method”
to decide placement 1 1st 5
2nd
11.07.2010 Dr. Erkan Bayraktar 2 3 4 95
CORELAP - Example
 3 enters first
 4 enters next (A with 3)
 2 enters (both 1 & 2 have E but 2 has higher TCR)
 1 enters next (has A with 2)
 5 enters last
Order of entry 3-4-2-1-5

CORELAP - Layout Concept
 Get rect. shaped depts

(generally) and
irregular borders
 Highest TCR goes in
center to increase
adjacency
 Same layout each time
 Scoring uses “smaller
is better”
 Details in book.
 Placement decision:
 Placing rating: sum of the weighted closeness
rating btw the department to enter the layout and
its neighbors.
 Place to the highest placing rating.
 In case of tie, compare boundry lengths of the
tied locations.
 Calculate layout score
 Sum (Numerical closeness rating X lenght of shortest
path)
 Use shortest rectilinear path between departments
 NOT rectilinear distance btw departments

Example:
 Excel example:
 CORELAP Original
 CORELAP

Notes on ALDEP and CORELAP
 Construct initial block diagrams

 They are arbitrary and use subjective
information
 They are useful in that they help the
designer generate layout ideas
 Do not treat scores as ratio values
 200 pts is not “twice as good” as 100 pts
 Many other factors to consider in any real
layout project
 Codes for these programs are almost non-
existent
What algorithm to choose ?
 What’s the task?  What is the

 Construction objective function ?
 Improvement  Distance-based
 What are the  Adjacency-based
constraints?  All computerized
 Shape outputs still need to
 Fixed departments be “massaged”

Dynamic Layout Analysis -
Simulation
 Many languages available

 Arena® most widely used for general purpose
 AutoMOD® most widely used for MH systems
Existing Hot Dog Line

Example – AutoMOD

Computerized Layout Planning
 Does not provide an absolute best

model for finding the optimal layout.
 Does provide algorithms for evaluating
a large number of alternative layouts.
 It is important to understand the
underlying assumptions and scoring
models of each procedure in order to
correctly interpret the results.
Homework
 Chapter 6
 6.7, 6.12, 6.13
 6.18, 6.23,
 6.25, 6.27, 6.29
 6.31,
 6.38, 6.40

LOGIC
 Layout Optimization with Guillotine Induced
Cuts.
 Inputs are
 from-to chart,
 total area,
 dept areas
 Distance-based objective function
 Improvement algorithm, can be used for
construction too
LOGIC: Algorithm
 Divides building into smaller and smaller
sections by successive horizontal or vertical
cuts.
 Stops when each section is a single
department
 Constructs a tree to keep track of cuts and
subsections
 Choice of cuts made using search strategy:
 Such as simulated annealing

Cut-Tree for Example
A,B,C,D,E,F,G,H

Example ...

“Selling Your Plan”
Lecture 10 (Chp.11 & Chp.12):
Evaluation and Selection process

Preparion, Presention, Implemention,
and Maintenance
Selling Your Plan
 The Layout
 Try to illustrate how
the design works
 2-D or 3-D CAD
Drawing
 May need large plots
 Include flow lines
 Show analysis results
 Show multiple
alternatives
 Simulation model if
possible
7/11/2010 Dr. Erkan Bayraktar 2
Selling Your Plan
 The Written Report  Letter of Transmittal
 Make it easy to read and  Cover Page
understand  Executive Summary (1-page only)
 Avoid detailed calculations in  Table of Contents
body of report, use summary  Introduction (Problem description,
tables, plots etc. be specific)
 Label all Figures and Tables  Current System (if applicable)
with a sequential number and  Operation and Analysis
 Critique
add a caption
 Proposed System
 Be organized and neat, use  Design Methodology
consistent headers, sub-  Operations and Analysis
headers, 1.0, 1.1, 1.1.1  Results/List of Features
 Don’t teach FP, SELL your  Cost Justification
design!  Plan of Implementation (optional)
 Writing IS re-writing!  Conclusions (rephrase and restate
intro) and Recommendations
 Appendices (with supporting data,
reference them in order)
Selling Your Plan
The Oral Presentation
 Be brief and direct
 Be confident, well-dressed
 Use quality visuals and avoid gimmicks
 Match speech to sequence of slides
 Be open to questions at any time
 Stay on point!
 What is the problem?
 What should be done?
 How should it be done?
 Why should your design be implemented?
 List features
 REHEARSE, REHEARSE, REHEARSE!

Evaluation & Selection
Economic Justification
Objectives of this Section
 Discuss the importance of proper economic
justification (EJ).
 Present a basic 7-step approach.
 Understand some of the difficulties related

to FP/MH investments.
 Review some useful techniques

Evaluation

Evaluation

Why is EJ Important?
 Stockholders have money.

 They don’t want to give it to you…
 Interest Lost
 Opportunity Cost
 …unless you offer a greater rate of
return
 You’d like to determine that rate…
 What if you make a mistake?
A 7-Step Process
 Specify the alternatives

 Define the planning horizon
 Estimate the cash flows
 Specify the interest rate
 Compare the alternatives
 Perform sensitivity analysis
 Select the best alternative
1. Specify the alternatives
Some Rules of Thumb
 Many possible solutions usually exist.

 Define a mutually exclusive set of
feasible alternatives.
 Avoid “size gates”.
 Get the big picture.
 Design the whole, justify the whole, and
implement the pieces.
 Don’t forget the “Do-Nothing” alternative.
2. Define Planning Horizon
. Think long term, (5-10 years)…

but not too long.
• Don’t confuse PH with
equipment or depr. life.
• Use the same PH for all
alternatives.
• Some companies have standard
PH’s.

3. Estimate Cash Flows
 Most difficult aspect
 Yearly estimates of costs and benefits
 Comprised of direct, indirect, and intangible

factors.
 Must be based only on future costs and

benefits only.
Categories of Costs/Benefits
 Direct Market Consequences
 items which have an established market price, such as:
 Increased Sales
 Labor (direct, indirect)
 Energy, Materials, Space
 Indirect Market Consequences
 items not directly priced in the marketplace but a value is
assignable.
 Safety, Inventory, Speed of service
 Intangibles
 items which cannot be assigned a value
 Flexibility/expandability
 Effect on future business practices
 Effect on market share

www.grossassociates.com/cal
culator.cfm

Indirect and Intangible Items
 Higher morale  Better quality of life
 Better customer service  Improved reliability
 Reduced supervision  Ease of design change
 Reduced training  Improved relationships
 Less clutter  Reduced handling
 Reduced product loss  Less expediting
 Reduced product damage  Reduced inspection
 Experience with new  Reduced scrap
technology  Reduced rework
 Increased flexibility  Reduced setup time
 Less resistance to change  Better quality
 Less paperwork  Reduced transportation
 Improved mgmt productivity  Increased safety
 Faster deliveries  Better scheduling and
workflow
What Are They Worth?

Some Common Effects
 Can be tricky to
evaluate:
1. Increased Throughout
2. Decreased Labor
3. Improved Quality
4. Improved Safety
5. Decreased Inventory
6. Space Savings

Increased Throughput
Demand > Capacity Demand < Capacity
 Each additional unit  Each added unit can’t be
produced can be sold sold
 Value each added unit as  Can deliver units faster
the profit gained  Can meet demand with
fewer production hours
 Watch for added expenses
 Value of time saved is the
downstream. result of labor saved,
 Added capacity needed, energy saved.
 Integer effects  Look for other creative
 Returns increase uses for excess time
 Field available.
support/maintenance  Training? Selling?
Maintenance?
 Etc.

Decreased Labor
(Automation)
 Will excess employees be laid off?
 Labor $ saved
 Will they displace the hiring of temps?
 Lower hiring expense?
 Can we use them to increase sales?
 Increased revenue
 Can we eliminate a shift?
 Savings of labor, energy, management
overhead

Improved Quality
 Fewer rejects
 increased throughput (just did that one!)
 Happier customers
 Increased demand (can you meet it?)
 How will it affect future growth?
 Fewer returns
 Lower demand for:
 Customer service
 Return processing
 Field repair
Improved Safety
 Cost Avoidance
 Medical costs
 Lost Time
 Replacement Worker Costs
 Lost productivity
 Workers Comp
 Reduced Turnover
 Hiring expense
Lower Inventory Levels
 Interest earned on capital
 Storage Space Savings
 Energy
 Insurance
 Protection
 Lease
 Savings in loss due to damage, pilferage
 Negative effects
 Slower response?
 Higher costs charged by vendors (storage)?
 Lost sales?

Space Savings
 What is each square foot worth?
 Don’t value it using allocated overhead.
 Concentrate on actual present savings:
 Energy
 Insurance
 Protection
 Lower lease cost (if leasing space)
 Potential sale or lease of excess space (if own space)
 Future cost avoidance:
 May delay need for expansion
 Must analyze (predict) future growth

Activity Based Costing
 A better way to understand and control indirect costs.
 It assigns costs to products or customers based on the
activities involved and the resources they consume.
 Overhead is traced to a product rather than spread across all
products based on direct labor hours.
 Products and customers consume activities which in turn,
consume resources.

4. Specify the Interest Rate
 Hurdle rate
 Return on investment
 Minimum attractive rate of return (MARR)
 Interest rate used in DCF calculations
 Should reflect opportunity cost of alternative
uses for capital
 Most American companies use MARR of 10-
20%
 Japanese firms use 5-10%
5. Compare the Options
 Many different methods exist
 Companies have preferred ones
 Most popular are:
 Net Present Worth (NPW)
 Internal Rate of Return (IRR)
 Compute After Tax with inflation
•Easy to use, but incorrect

•Assumes i=0%
•Fails to consider cash flows
beyond PP

Is Payback Any Good?
Yr A B
0 -$1000 -$2000
1 250 1000
2 250 1000
3 500 0
4 1000 -200
a) What is the payback period for each?
b) Which do you think is best?
Finding Present Values

Example of Investment
Alternatives
 Two mutually-exclusive alternatives are compared

against a do-nothing option (NPW=0)
 i=13%
 Select the option that Maximizes NPW

Exercise - Should we
invest?

Using Spreadsheets
 Illustrated here with MS-Excel

6. Supplemental Analysis
 What if some of your data is wrong?
 How much error will impact the decision to invest?
 Breakeven Analysis
 requires least amount of information
 Is true value above or below breakeven?
 Sensitivity Analysis
 requires more information
 What’s the range of possible values?
 Risk Analysis
 requires the most information
 What are the possible values and their probabilities?
7. Select Preferred Option
 Obtain support from users of the system
 Speak the language of the listener
 Don’t oversell technical aspects
 The decision maker’s perspective is broad
 This proposal is just one of many
 Selling is the name of the game
 Show well-being to the firm!
 THE GOLDEN RULE . . .
 Those with gold make the rules.

Facilities Planning
Lecture 11:
Warehousing & Distribution
Systems
Why to have a Warehouse
 To better match supply with customer demand
 Allows us to respond quickly to customer demand
 Allows for buffering against surges in demand or supply
 To consolidate product to reduce transportation

costs and to improve customer service
 To provide value added processing

 Assembly may occur – Dell
 LL Bean Monogramming
July 11, 2010 Dr. Erkan BAyraktar 2

Missions of a Warehouse
 To effectively ship product in any configuration to
the next step in the supply chain without damaging
or altering the product’s basic form
 Improving order picking operations
 Utilization of cross-docking
 Increasing productivity
 Effectively utilizing energy, labor, space resources
 Old rule of thumb: When warehouse 80% full, more space is
needed.
 Increasing value-added services

Warehouse Management
System (WMS)
 Software that tracks and manages
warehouse activities
 Records receipts of inventory into the
system and registers shipments out
 Manages the stock locations and records
where goods are placed
 Helps generate orders for replenishment
 Can help with assigning items to locations in
the warehouse
Warehouse Management Systems
(WMS)

Operations of a Warehouse
 Inbound Processes
 Receiving
 Put-away
 Outbound
 Order-Picking
 Checking, Packing, Shipping

Typical Warehouse Functions
REpackaging
July 11, 2010

Cross-Docking
Dr. Erkan BAyraktar 10
Receiving and Shipping
Receiving and Shipping
 Consider handling, storing, and control
requirements to provide the proper
combination of space, equipment, and
people.
 Receiving and shipping functions interface
with the outside environment.
 Receiving:
 Accounts for about 10% of operating costs in a
facility
 Shipping:
 Accounts for around 15% of total costs
Receiving and Shipping:
Facility Requirements
 Receiving  Shipping
 Stage and spot carriers  Staging area (may
 Waiting include accumulate and
 Maneuvering pack)
 Unloading  Office area
 Dockboards  Stage and spot carriers
 Receiving area  Dockboards
 Staging area
 Office area

 Desirable Attributes.
 Directed flow paths (avoid double handling)
 Continuous flow of effort (try to schedule
inbound shipments)
 Concentrated area that minimizes material
handling
 Efficient material handling (try to influence unit
load configuration)
 Provide safe operations
 Minimize damage
 Provide good housekeeping

Receiving principles
1. Don’t receive
2. Prereceive (Advance shipping notes)
3. Cross-dock “cross-dockable” material
4. Put away directly to primary or reserve locations
5. Stage in storage locations
6. Complete all necessary steps for efficient load
decomposition and movement at receiving
 Prepackage in issue increments
 Apply necessary labeling and tags
 Cube and weigh for storage and transport planning

Receiving principles...
7. Sort inbound materials for efficient putaway

8. Combine putaways and retrievals when
possible
9. Balance the use of resources at receiving
by scheduling carriers and shifting time-
consuming receipts to off-peak hours
10. Minimize or eliminate walking by flowing
inbound material past workstations.

Shipping principles
1. Select cost and space effective handling units
2. Minimize product damage
 Unitize and secure loose items in cartoons or totes
 Unitize and secure loose cases on pallets
 Unitize and secure loose pallets in outbound trailers
3. Eliminate shipping and direct-load outbound
trailers
4. Use storage racks to minimize floor space
requirements for shipping staging
5. Route on-site drivers through the site and
minimize paperwork and time
6. Use small-parcel shipping
Space Planning
 What is to be receiving and shipped?
 What, how much, when
 Receiving and shipping analysis chart
 Number and type of docks
 Estimate with simulation, queuing analysis
 Configuration
 Carrier approaches, traffic flow and waiting area
 Apron depth, bay width
 An indivual with proper equipment can load and unload 7500
lb/hr.
 Space requirements for receiving and shipping area:
 Personnel Convenience, Offices, Material Handling Equipment
Maintenance, Trash Disposal, Pallet and Packing Material Storage,
Trucker’s Longue, Staging Area, Equipment Maneuvering

Equipment Planning
 Equipment required for a proper interface

between the carriers and the docks.
 Dock levelers
 Portable ramp
 Permanent ramp
 Yard ramp
 Scissor lift
 Bumper pads
 Dock shelters

Storage & warehousing
Storage & warehousing
 Storage Function
 Activity of storing raw materials, supplies,
and in process material.
 Warehousing Function
 Activity of storing finished goods.
 Accounts for around 15% of warehouse
operating expenses

Storage and Warehousing
 Basic Functions  Additional Functions
 Receiving  Inbound inspection
 Identification and  Parts preparation
sorting  Kitting
 Dispatching to storage  Item packaging
 Placing in storage
 Storage
 Removing from storage
 Order accumulation
 Packing
 Shipping
 Record keeping
 Goal:  Objectives:
 Maximize resource  Maximize space
utilization while utilization
satisfying customer  Maximize equipment
requirements, or utilization
 Maximize customer  Maximize labor
service subject to utilization
resource constraints  Maximize accessibility
 Resources: of all materials
 Space  Maximize protection of
 Equipment all materials
 Personnel

Storage and Warehousing SPACE
PLANNING: Storage Analysis Chart

Storage Location Methods
 Dedicated Storage  Randomize Storage
 Each stock keeping unit (SKU) is  SKUs are stored in any
assigned a spot available location
 Easy to find and manage
 Retrievals are first-in, first-
 Pick times may be longer out (FIFO).
 Need overflow areas
 Allows for better space
 Must plan space for maximum utilization
on hand
 Storage locations can be  Requires good control
arbitrarily determined, such as system
part number sequence, or they  “Closest-open-location”
can be determined based on the rule often used
SKU's activity level and inventory
level.  Space is planned for
 Number of storage locations is average amount of each
the sum of the maximum SKU
inventory level for each SKU.  Safety Stock +
½(Replenishment Qty)

Example
 Can be a substantial difference in

warehouse space requirements!

Example
Randomize Storage:
Dedicated Storage:
Dedicated Storage
 Maximize Throughput
 Assign SKUs to storage locations based on the ratio of
their activity to the number of locations assigned to the
SKU.
 NOTE: Activity is the number of storages/retrievals per
unit time not the quantity of material moved.
 Inverse of cube per order
 Hit rate
 SKU with the highest ranking is assigned to the

preferred openings (i.e., closest to the I/O point).

The Cube-per-Order Index for
Dedicated Storage
 Smallest value gets best locations

 Inverse is the “hit rate” for a particular location”
 Logic is that items that have lots of transactions
AND do not take up much space should get the
best locations
 Items that either do not have many transaction OR
ones that take up lots of space should go in the
worst locations

Example

Multiple I/O Points
 Rank order locations using weighted-
average dx

Total Dx. for the
Slotting
Assignment
 Multiply distance
for each cell time
the expected
number of “hits” per
time (1/COI).

Storage Layout Planning
 Supermarket Storage
 Combination of random and assigned storage.
 Class-Based Storage
 Hybrid configuration which assigns SKUs to classes
based on their activity-to-space ratios, but uses
randomized storage within the classes.
 A’s 80% of S/R need 20% of space
 B’s 15% of S/R need 30% of space
 C’s 5% of S/R but need 50% of space
 Yields some of the throughput benefits of dedicated
storage and the space benefits of randomized storage.
 If materials enter and leave WH from one I/O pt.

Material Shipped/Received in
Different Amounts
 Calculate Shipping/Receiving Ratio

 S/R = (Trips To Shipping)/(Trips from
Receiving)
 S/R<1 locate nearer to receiving
 S/R>1 locate nearer to shipping
 S/R=1 does not matter

Proposed Layout

 Layout Planning  Principles
 Objectives  Popularity
 To utilize space  Similarity
effectively  Size
 To provide efficient  Characteristics
materials handling  Space Utilization
 To minimize storage
cost while providing the
required levels of
service
 To provide maximum
flexibility
 To provide good
housekeeping

Storage and Warehousing:
Layout Principles
 Popularity  Similarity
 Items that are received
 Size and shipped together
 Provide a variety of should be stored
together.
storage location sizes
to accommodate a  Characteristics
variety of products.  Perishable materials
 Oddly shaped items
 Utilize adjustable racks
 Crushable items
or shelves if product
 Hazardous materials
and unit load sizes are
 Security of items from
uncertain or change pilferage
periodically.  Compatibility between
items
Principles: Popularity
Average
Quantity per Trips to Customer Trips to
Product Receipt Receive Order Size Ship
A 40 pallets 40 1.0 pallet 40
B 100 pallets 100 0.4 pallets 250
Slow C 800 cartons 200 2.0 cartons 400
Moving D 30 pallets 30 0.7 pallets 43
E 10 pallets 10 0.1 pallets 100
F 200 cartons 67 3.0 cartons 67
Medium Fast Entrance G 1000 cartons 250 8.0 cartons 125
Moving Moving and Exit H 1000 cartons 250 4.0 cartons 250
H F D B
Receive Main Aisle Ship
G A C E
Storage and Warehousing: Layout
Principles: Space Utilization
 Conservation of Space  Materials Accessibility

 Maximizing  Each storage face has
concentration aisle access
 Maximizing cube  Majority of items stored
utilization along the long axis of
 Minimizing the area
honeycombing  Aisles should not be
 Limitations of Space placed along walls
without doors
 Clear height
 Avoid locked stock by
 Stacking height using a two-bin system
 Floor loading
 Columns

Space Utilization
 Loss of Cube
Utilization
 Aisle Example

Space Utilization ...
 Loss of Cube Utilization
 Honeycombing
 Wasted space that results because a partial row or stack cannot be
utilized because adding materials would result in blocked storage.
 Space Standard
 Volume requirement per unit load stored to include allocated
space for aisles and honeycombing.

Storage Models
 Determine best design for each storage subsystem
 Unit loads stored and retrieved with lift trucks
 Four conventional storage methods analyzed
 Block stacking
 stacked on top of each other
 stored on floor in storage lanes
 Deep lane storage
 Single-deep rack
 Double-deep rack
 Tradeoff between density of storage and accessibility
 Have different types of space losses due to rack design and
honeycombing
 Minimize average amount of floor space required

 Equipment Planning
 Storage Equipment Types
 Bulk Storage
 includes block and tight-blocking stacking
 Portable Racks or Stackable Racks
 Pallet Rack
 Cantilever Racks -- provide long uninterrupted spans
 Drive-In or Drive-Through Racks
 Flow-Through Rack
 Bin Racks or Shelving
 Sliding Racks

Order Picking
Order Picking
 A classical problem in
warehousing and
distribution is the order
picking problem.
 Picking several
different items to
compose an order.
 Could be a customer
order, delivery for a
retail store, kit for
manufacturing or
assembly, etc.

Order Picking...
 Processing customer orders (typically done
by the computerized warehouse
management system of the facility):
 checking that the requested material is available
to ship;
 if necessary, coordinating order fulfillment with
other facilities of the distribution network;
 producing the “pick” lists to guide the order
picking and the necessary shipping
documentation;
 scheduling the order picking and the shipping
activity.
Order Picking ...
 The set of physical
activities involved in
collecting from the storage
area the materials
necessary for the fulfillment
of the various customer
orders.
 ~55% of warehouse
operating costs
Activity % Order Picking Time

Traveling 50%
Searching 20%
Pick 15%
July 11, 2010

Paperwork and OtherDr. Erkan BAyraktar
15% 55
Activities
Pick Lists

Order Picking Objectives
 Productivity (pick rate)
 Piece pick operations measure the pick rate in line items
picked per hour
 Case pick operations measure cases per hour and line items
per hour.
 Pallet pick operations measure is pallets picked per hour.
 Productivity gains are usually in the form of reducing the travel
time.
 Cycle Time
 Amount of time it takes to get an order from order entry to the
shipping dock
 Immediate release of orders to the warehouse for picking and
methods that provide concurrent picking of items within large
orders are ways to reduce cycle times.

...
 Accuracy
 Does the customer get what they ordered? Affected by
many factors,
 product numbering scheme,
 design of product labels,
 packaging,
 picking documents,
 location numbering scheme,
 storage equipment,
 lighting conditions, and
 picking method used.
 Technology can aid picking accuracy (pick-to-light,
scanners)
Principles of Order Picking
1. Apply Pareto’s Law

2. Use a clear easy-to-read Picking doc.
3. Use a pre-routed, pre-posted picking doc
4. Maintain an effective stock-location system
5. Eliminate and combine tasks if possible
 Traveling and extracting
 Traveling and documenting
 Picking and sorting
 Picking, sorting, and packing

6. Batch orders
Procedure Pickers per Order Line Items per Periods per Shift
Pick
Discrete Single Single Single
Zone Multiple Single Single
Batch Multiple Single Single
Wave Single Single Multiple
Zone-Batch Multiple Multiple Single
Zone-Wave Multiple Single Multiple
Zone-Batch- Multiple Multiple Multiple
Wave
7. Establish separate forward and reserve picking areas
8. Assign popular items to easily accessible locations
9. Distribute picking activity so as to reduce congestion
10. Assign items that are likely to be requested together to the
same or nearby locations
11. The order picker should be responsible for order accuracy
12. Avoid counting
13. Require pick confirmation
14. Design picking vehicles to minimize sorting time and errors
and to enhance picker’s comfort
15. Eliminate paperwork from the order picking activity

Single Order Picking
 Product is stored in fixed locations  The picking document should
on static shelving or pallet rack. have the picks sorted in the
 An order picker picks one order same sequence as the picking
at a time following a route up flow.
and down each aisle until the  Works well in operations with
entire order is picked. a small total number of orders
 The order picker will usually use and a high number of picks
some type of picking cart. per order.
 The design of the picking flow  Operations with low picks per
should be such that the order order will find the travel time
picker ends up fairly close to the excessive
original starting point.  Operations with large numbers
of orders will find that the
congestion from many pickers
working in the same areas
slows down the processing.

Batch Picking
 Multiple orders are grouped  In operations with low picks per
into small batches. order, batch picking can greatly
reduce travel time by allowing the
 An order picker will pick all picker to make additional picks
orders within the batch in while in the same area.
one pass using a  Accuracy can suffer if you do not
consolidated pick list. prevent mixing of orders.
 Usually the picker will use a  In very busy operations, batch
multi-tiered picking cart picking is often used in
maintaining a separate tote or conjunction with zone picking and
carton on the cart for each automated material handling
order. equipment.
 In order to get maximum
 Batch sizes usually run from 4 productivity in batch pick
to 12 orders per batch operations, orders must be
depending on the average accumulated in the system until
picks per order in that specific there are enough similar picks to
operation. create the batches.

Zone Picking
 The order picking version of the  Balance the number of picks from
assembly line. zone to zone to maintain
 Picking area is broken up into consistent flow.
individual pick zones.  Creating fast pick areas close to
 Order pickers are assigned a the conveyor is essential in
specific zone, and pick items achieving high productivity in
within that zone. zone picking.
 Orders can be moved from one  Most effective in large operations
zone to the next as the picking with high total numbers of SKUs,
from the previous zone is high total numbers of orders, and
completed (also known as "pick- low to moderate picks per order.
and-pass"). Or, items can be  Separate zones also provide for
consolidated and sorted. specialization of picking
techniques such as having
automated material handling
systems in one zone and manual
handling in the next.

Wave Picking
 Selected groups of orders are scheduled
for picking at specific time of the day
 Usually have multiple pick periods
throughout a shift.
 Useful to coordinate picking, replenishment,
and shipping functions
 Can be combined in all other methods to
create hybrid picking schemes
 Zone-batch-wave picking

Comparison

Order Picking Problems
 Batching
 Group orders into pick lists
 Based on priority or item similarity between orders
 Sequencing
 Sequence items in the pick list
 Based on item locations to minimize expected travel
distance in picking tour (total pick time)
 Picking tour is a specification of the sequence in which
items in a specific order will be “picked”
 This problem is prevalent where items must be picked
from both sides of an aisle and the picker cannot reach
items on both sides without changing position
 Wide aisles are common to allow two-way traffic, turning
around in the aisle, or product storage with fork lifts

Pick Sequencing
 How picker traverses aisles – the route they take
 Often difficult to describe a pick routing or sequence
to picker
 Easy to tell picker which location is next picked
 Difficult to tell picker exact route to take to next pick
 Traveling Salesman Problem (TSP)/VRP
 S-Shaped strategy
 Largest Gap strategy
 Bin numbering strategy

The Pick Sequencing
Problem
 Given a picking list, sequence the visits to the
picking locations so that the overall traveling effort
(time) is minimized.

Remarks
 The TSP problem is an NP-  When the “no subtour” constraint
complete problem: It can be is removed, the remaining
solved optimally for small formulation defines a Linear
instances, but in general, it will Assignment Problem (LAP) (which
is an easy one; e.g., the
be solved through heuristics. “Hungarian Algorithm”) => Solving
the corresponding LAP can
 There is a vast literature on provide lower bounds for
TSP and the development of assessing the sub-optimality of the
heuristic algorithms for it (e.g., solutions provided by the applied
heuristics.
Lawler, Lenstra, Rinnooy Kan
and Shmoys, “The Traveling
Salesman Problem: A guided  In the considered application
context, the distances cij should
tour of combinatorial be computed based on the
optimization”, John Wiley and appropriate distance metric; i.e.,
Sons, 1985). rectilinear, Tchebychev, “shortest
path”

S-Shaped Pick Sequencing
 Any aisle containing at least one item to be picked is traversed
entirely
 An exception is made for last aisle if number of visited aisles is odd
 Aisles where nothing has to be picked are skipped.
 Thus aisles are visited in the shape of an S.
 The picker thus enters an aisle from one end and leaves the aisle from
the other end, starting at the left side of the warehouse.
 After picking the last item, the order picker returns to the front end of the
aisle.
 This strategy is used frequently, because it is very simple to use and
to understand.
 S-shape strategy efficient when
 Large number of SKUs per order
 When it is time consuming to enter and leave aisles i.e. high bay order
picking trucks

S-shaped Pick Sequence

Largest Gap Strategy
 All aisles except first and last are exited on same side entered
 How far to go into aisle?
 picker enters an aisle as far as the largest gap within an aisle
 Gap = distance between any two adjacent picks, distance between the
first pick and the front aisle, or distance between the last pick and the
back aisle
 The largest gap is the part of the aisle that is not visited by the
order picker.
 If the largest gap is between two adjacent picks, the picker performs
a return route from both ends of the aisle.
 Otherwise, a return route from either the front or back aisle is used.
 The largest gap within an aisle is therefore the portion of the aisle
that the picker does not traverse.
 Largest Gap strategy works well when
 The number of picks per aisle (pick density per aisle) is low
 The additional time to change aisles is short.

Largest Gap Pick Sequence

S-Shape Heuristic
 The order picking route starts at the depot.
 It goes to the front of the main aisle closest to the
depot, that contains at least one item (1).
 This main aisle is traversed up to and including
the block farthest from the depot, that contains at
least one item (2).
 If the current block contains at least one item: Go
to the left most aisle containing items or go to the
right most aisle containing items, whichever is the
closest (3);
 go from one aisle to the next and traverse any
aisle containing items entirely; after picking the
last item, return to the front of the block (4).
 If this block contains no items: Traverse the aisle
of this block, that is closest to the current
position.
 Repeat this procedure for all blocks until the
block closest to the depot has been considered
(5).
 Finally, return to the depot.

Largest Gap heuristic
 the order picking route starts at the depot; it goes to the front
of the main aisle closest to the depot, that contains at least
one item; traverses this main aisle up to and including the
block farthest from the depot that contains at least one item
(1).
 On traversing the cross aisle (the rear aisle), each aisle is
entered as far as the “largest gap” and left from the same
side that it was entered (2).
 A gap represents the distance between any two adjacent
items, or between a cross aisle and the nearest item. Thus,
the largest gap is the part of the aisle that is not traversed.
 The last aisle of the block is traversed entirely, by which we
arrive in the next cross aisle (3).
 This cross aisle is traversed, while visiting the aisles of the
blocks on both sides of the cross aisle up to the largest gap.
First the aisles on one side of the cross aisle are visited (4)
and thereafter the aisles on the other side (5).
 One aisle is again traversed entirely to reach the next cross
aisle (6). This may be either the left or the right most aisle
containing items, depending on which of the two gives the
shortest travel distance within the cross aisle.
 This process is repeated for all blocks containing items.
 If a block does not contain items, then the aisle of this block,
that is closest to the current position is traversed entirely.
After considering the last block, return to the depot (7).

Aisle-by-Aisle Heuristic
 This heuristic is described in
Vaughan and Petersen (1999).
Basically,
 Every main aisle is visited once.
 The order pickers starts at the
depot and goes to the left most
aisle containing items. All items in
this main aisle are picked and
 A cross aisle is chosen to proceed
to the next main aisle.
 Again all items in this main aisle
are picked and the order pickers
proceeds to the next main aisle.
 The aisle-by-aisle heuristic
determines which cross aisles to
use to go from one aisle to the
next in such a way that the
distances traveled are minimized.

Interactive Warehouse
 http://www.roodbergen.com/wareho
use/

Crossdocking
 Eliminates the inventory-  Workers only move the
holding function of a shipment from the inbound
warehouse trailer to an outbound trailer
 Allows it to serve its bound for the appropriate
consolidation and shipping destination.
functions  Eliminates expensive
 Transfer incoming shipments functions of inventory holding
directly to outgoing trailers and order picking but requires
without storing them information system
 Arriving goods from the infrastructure in modern
vendor already have a supply chains.
customer assigned  Shipments typically spend less
than 24 hours at the facility,
sometimes less than an hour
=> Just-In-Time for distribution

Examples
 Home Depot operates a pre-distribution crossdock in Philadelphia
serving more than 100 stores in the Northeast area.
 Wal-Mart uses
 traditional warehousing for staple stock - i.e., items that customers are
expected to find in the same place in every Wal-Mart (e.g., toothpaste,
shampoo, etc.)
 crossdocking for direct ship - i.e., items that Wal-Mart buyers have gotten
 a great deal on and are pushing out to the stores
 Costco uses pallet-based post-distribution crossdocking
 Computer firms like Dell consolidate the major computer components
in “merge in transit” centers.
 JIT manufacturers consolidate inbound supplies in a nearby
warehouse
 LTL and package carriers (UPS, FedEx) crossdock to consolidate
freight

Optimizing the Crossdock
Performance
 The major operational cost for crossdock is the labor.
 Hence, the system performance is optimized by seeking to
maximize the throughput of the crossdock operations by
establishing an efficient freight flow.
 Factors affecting the freight flow:
 Long term decisions:
 Number of doors and shape of the building
 Employed material handling systems
 parking facilities
 Medium term decisions:
 Crossdock layout, i.e., the characterization of the various doors as
strip or stack doors, and the assignment of specific destinations to
the stack doors
 Short term decisions
 Inbound Trailer Scheduling

Doors and Parking
 Number of stack doors:
 determined by the volume of freight moved to each customer,
and any potential delivery schedules
 Number of strip doors:
 since trailer unloading is a faster job than trailer loading, a
common rule of thumb is to have twice as many stack doors as
strip doors, so that you balance the incoming with the outgoing
flow.
 In general the larger the number of doors in the crossdock, the
larger the distances that must be traveled.
 The parking lot should provide parking space for two trailers
per door, so any flow surges can be accommodated without
considerable problems.

Shape
 Corners are bad! Specifically:
 Internal corners take away door locations (about 8 doors
per corner)
 External corners take away storage space in front of the
door (w/2 doors’ worth of floor space)
 But min corners increases travel distance and congestion
at centrally located doors
 Suggested building shapes:
 I for small crossdocks (up to 150 doors)
 T for medium size crossdocks (between 150-250 doors)
 X or H for the largest crossdocks (above 250 doors)
 Frequently, the building shape is constrained
Crossdock Layout
 In general, centrally located doors should be
reserved for the unloading activity and for
destination with large outgoing flows.
 On the other hand, if the freight on each

inbound trailer is destined to a small and
stable set of customers, then the facility can
be decongested by establishing distinct hubs
serving clusters of destinations that tend to
have their freight on the same incoming
trailers.
Crossdock Layout ...
 Two extensively used heuristics are:
 the block heuristic:
 Assign first the unloading activity to the best doors (i.e. the
doors having the smallest average distances to all other
doors).
 Subsequently, assign the remaining doors to outbound
destinations, prioritizing them in decreasing order of their
flow intensities
 the alternating heuristic:
 The door assignment alternates between a strip door and a
stack door to the destination with the next highest flow
 The alternating heuristic produces solutions that are typically
10% better than the solutions produced by the block
heuristic.

I-shape Crossdock
Roadway Express crossdock in Chicago Heights, IL

T-shape Crossdock
American Freightways crossdock in Atlanta
T is best shape for medium/large

July 11, 2010 Dr. Erkan BAyraktar
crossdocks 90
H-shape Crossdock
Central Freight crossdock in Dallas; the largest LTL dock in the world -550
doors
H is
July best
11, 2010 shape for very largeDr.crossdocks
Erkan BAyraktar 91
Order Picking Equipment
 Static shelving
 Most common
equipment for
storage in piece
pick operations
 Economical where
there are few picks
per SKU or where
parts are very
small.
 Carton flow rack
 sections of gravity
conveyor mounted at a
slight angle.
 product is stocked from
the rear of the flow rack
and picking is done
from the face.
 most useful where
there is a very high
number of picks per
SKU.

 Carousels (Horizontal and
Vertical)
 Generally an operator will run 2
to 4 carousels at a time
avoiding the need for the
operator to wait while one unit
is turning.
 Picking is usually performed in
batches
 Most common in picking
operations with very high
number of orders, low to
moderate picks per order, and
low to moderate picks per sku.
 Provide very high pick rates as
well as high storage density.
 Pick-to-light systems are often
integrated into carousels.
 Automatic storage and
retrieval systems (ASRS)
 Mini-load or unit-load
types
 provide extremely high
storage density with
capabilities to work in
racking up to 100 feet
high.
 high costs of ASRS
equipment and the length
of the retrieval times make
it difficult to incorporate
into a piece picking
operation.

 Automatic picking
machines (rare)
 Used when high volumes
of similar products are
picked such as music
CDs,
 Pick-to-light
 LED displays light the
next pick and display the
quantity to pick.
 Increase accuracy and
productivity
 Bar-code scanners
 Voice-directed picking
Automated Conveyor and
Sortation Systems
Deflector
Sliding Shoe Sorter

Order Picking
(lines/person hr)

Many Supporting Websites
 Material Handling Industry of America
 www.mhia.org
 Modern Material Handling Magazine
 www.mmh.com
 Design Plans & Ideas
 http://www.contentconvergence.com/2001web/tocmain.ht
m
 Gross & Associates
 www.grossassociates.com
 Art Avery Associates
 http://www.elogistics101.com

Homework
 Chapter 7
 22, 25, 26, 29

Facilities Planning
Lecture 11:
Material Handling
Material Handling
 Material handling adds COST, but not
VALUE.
 as much as 60% of total production cost
 20%-30% of direct labor costs
 50%-70% of indirect labor costs
 What’s the best way to handle materials?
 DON’T!!
 Goal:
 MINIMIZE COSTS OF MATERIAL HANDLING

Importance of Material
handling
 Critical element in all facility designs
 In most manufacturing facilities
 25% of all employees
 55% of factory space 15-70% of total mfg. cost
 87% of production time
 Impacts space requirement, profits, quality, safety,
and productivity
 Usually the activity in which the greatest savings
can be obtained
 Can be the main backbone of a company’s
production execution strategy
 Adds time and place utility

Definitions
 Material handling:
 “The art and science of moving, storing, protecting, and
controlling materials.”
 Material handling means using the
 Right method, to provide the
 Right amount, of the
 Right material, at the
 Right place, at the
 Right time, in the
 Right sequence, in the
 Right position, in the
 Right condition, at the
 Right cost.
Material Handling
 Questioning Attitude:
 Why, what, where, when, how, who, and
which?
 Why is handling required?

Muther’s Material Handling
Equation
Yes
WHY WHAT WHERE + WHEN HOW + WHO
?
No MAT’L MOVE METHOD
A
Q
D
etc.
E
P
C
Type, Sink, Source Flow; Unit

Qty, Direction Flow, Volume Manpower
Characteristics Type of Move, etc. Equipment

Scope of Material Handling

Material Handling
 Principles (CIC-MHE)
 Provide “rules-of-thumb”
 Planning
 Standardization
 Work
 Ergonomic
 Unit Load
 Space Utilization
 System
 Automation
 Environmental
 Life Cycle Cost
 Checklists
 Provide a check of new designs
MH System Designer’s
Dilemma
 Complex interrelationships between FP and MH
 Many equipment types to choose from
 Many characteristics are hard to quantify
 Flexibility
 Expandability
 Speed of service
 Multiple Objective
 Lack of comprehensive design tools
 Large combination of alternative solutions
 Lack of data on life cycle costs and reliability.

Material Handling System
Design Process
1. Define the objectives and scope of the
MHs

MH Design Process...
2. Analyze the requirements for handling, storing, and controlling material
 Observe activities
 Obtain layouts, flow patterns, schedules, etc.
 Obtain information on existing material handling equipment
 Analyze situation by Twenty Principles of Material Handling, and/or forms
 Can activities be combined, simplified, eliminated???
3. Generate alternative designs for meeting MHs requirements
3. Organize meeting with material handlers, machine operators, supervisors, and
support engineers
4. Evaluate alternative MHs designs
5. Select the preferred design for handling, storing, and controlling material
6. Implement the preferred design
 Selection of suppliers
 Training
 Installation, debug, and start-up
 Performance audits

Material Handling
 Factors
 Type of materials
 Physical characteristics
 Quantities to be moved
 Sources and destinations for each move
 Frequency or rate of each move
 Equipment alternatives
 Units to be handled
 Material Flow  Method of handling, storing, and
controlling Material Handling
 Σ Why (Where + What+ When)

moves
MH Planning Chart
Where What
Material Handling
 Study each move

 Can the move be eliminated?
 Can the move be combined with another
or with an in-transit operation?
 Can the move be simplified?
 Is re-sequencing the moves possible? Is
it advantageous?
 If the move must take place, then
determine the best method.
The Material Handling
Principles
 Concise statements of 1. Planning
the fundamentals of 2. Standardization
MH practice 3. Work Principle
 “Rules-of-Thumb” 4. Ergonomic
 Developed by: 5. Unit Load
 College-Industry 6. Space Utilization
Council on Material 7. System
Handling Education
(CIC-MHE) 8. Automation
 Reduced from 20 to 10 9. Environmental
10. Life Cycle Cost
1. PLANNING PRINCIPLE
 All material handling should be the
result of a deliberate plan where the
needs, performance objectives and
functional specification of the
proposed methods are completely
defined at the outset.
 Definition: A plan is a prescribed
course of action that is defined in
advance of implementation.
 In its simplest form a material handing plan
defines the material (what) and the moves
(when and where); together they define
the method (how and who).
Key Points:
 The plan should be developed in consultation
between the planner(s) and all who will use and
benefit from the equipment to be employed.
 Success in planning large scale material handling

projects generally requires a team approach
involving suppliers, consultants when appropriate,
and end user specialists from management,
engineering, computer and information systems,
finance and operations.
 The material handling plan should reflect the

strategic objectives of the organization as well as
the more immediate needs.
Key Points: ...
 The plan should document existing methods
and problems, physical and economic
constraints, and future requirements and
goals.
 The plan should promote concurrent

engineering of product, process design,
process layout, and material handling
methods, as opposed to independent and
sequential design practices.
2. STANDARDIZATION
PRINCIPLE
 Material handling methods,
equipment, controls and
software should be
standardized within the limits
of achieving overall
performance objectives and
without sacrificing needed
flexibility , modularity and
throughput.
 Definition: Standardization
means less variety and
customization in the methods
and equipment employed.

2. STANDARDIZATION
PRINCIPLE Key Points:
 The planner should select methods and equipment

that can perform a variety of tasks under a variety of
operating conditions and in anticipation of changing
future requirements.
 Standardization applies to sizes of containers and

other load forming components as well as operating
procedures and equipment.
 Standardization, flexibility and modularity must not be

incompatible

3. WORK PRINCIPLE
 Material handling work
should be minimized
without sacrificing
productivity or the level of
service required of the
operation.
 Definition: The measure of
work is material handling
flow (volume, weight or
count per unit of time)
multiplied by the distance
moved.
 Remember W=F*D
3. WORK PRINCIPLE
Key Points:
 Simplifying processes by reducing,

combining, shortening or eliminating
unnecessary moves will reduce work.
 Consider each pickup and set-down,

or placing material in and out of
storage, as distinct moves and
components of the distance moved.
3. WORK PRINCIPLE
Key Points: ...
 Process methods, operation sequences and

process/equipment layouts should be prepared that
support the work minimization objective.
 Where possible, gravity should be used to move

materials or to assist in their movement while
respecting consideration of safety and the potential
for product damage.
 The shortest distance between two points is a

straight line.

4. ERGONOMIC PRINCIPLE
 Human capabilities and
limitations must be
recognized and
respected in the design
of material handling tasks
and equipment to ensure
safe and effective
operations.
 Definition: Ergonomics is
the science that seeks to
adapt work or working
conditions to suit the
abilities of the worker.
4. ERGONOMIC PRINCIPLE
Key Points:
 Equipment should be selected that eliminates

repetitive and strenuous manual labor and which
effectively interacts with human operators and
users.
 The ergonomic principle embraces both physical

and mental tasks.
 The material handling workplace and the equipment

employed to assist in that work must be designed
so they are safe for people.
5. UNIT LOAD PRINCIPLE
 Unit loads shall be
appropriately sized and
configured in a way which
achieves the material flow and
inventory objectives at each
stage in the supply chain.
 Definition: A unit load is one

that can be stored or moved as a
single entity at one time, such as
a pallet, container or tote,
regardless of the number of
individual items that make up the
load.

Key Points:
 Less effort and work is required to collect and move
many individual items as a single load than to move
many items one at a time.
 Load size and composition may change as material

and product moves through stages of
manufacturing and the resulting distribution
channels.
 Large unit loads are common both pre and post

manufacturing in the form of raw materials and
finished goods.

Key Points: ...
 During manufacturing, smaller unit loads, including

as few as one item, yield less in-process inventory
and shorter item throughput times.
 Smaller unit loads are consistent with
manufacturing strategies that embrace operating
objectives such as flexibility, continuous flow and
just-in-time delivery.
 Unit loads composed of a mix of different items are
consistent with just-in-time and/or customized
supply strategies so long as item selectivity is not
compromised.

6. SPACE UTILIZATION
 Effective and efficient
use must be made of
all available space.
 Definition: Space in
material handling is
three dimensional and
therefore is counted as
cubic space.
 Don’t forget to look up!

6. SPACE UTILIZATION
Key Points:
 In work areas, cluttered and unorganized spaces

and blocked aisles should be eliminated.
 In storage areas, the objective of maximizing

storage density must be balanced against
accessibility and selectivity.
 When transporting loads within a facility the use of

overhead space should be considered as an option.

7. SYSTEM PRINCIPLE
 Material movement and storage
activities should be fully
integrated to form a
coordinated, operational system
which spans receiving,
inspection, storage, production,
assembly, packaging, unitizing,
order selection, shipping,
transportation and the handling
of returns.
 Definition: A system is a
collection of interacting and/or
interdependent entities that form a
unified whole.

7. SYSTEM PRINCIPLE
Key Points:
 Systems integration should encompass the

entire supply chain including reverse
logistics. It should include suppliers,
manufacturers, distributors and customers.
 Inventory levels should be minimized at all

stages of production and distribution while
respecting considerations of process
variability and customer service.
7. SYSTEM PRINCIPLE
Key Points:
 Information flow and physical material flow should

be integrated and treated as concurrent activities.
 Methods should be provided for easily identifying

materials and products, for determining their
location and status within facilities and within the
supply chain and for controlling their movement.
 Customer requirements and expectations regarding

quantity, quality, and on-time delivery should be
met without exception.
8. AUTOMATION PRINCIPLE
 Material handling operations should be
mechanized and/or automated where
feasible to improve operational efficiency,
increase responsiveness, improve
consistency and predictability, decrease
operating costs and to eliminate repetitive
or potentially unsafe manual labor.
 Definition: Automation is a technology

concerned with the application of electro-
mechanical devices, electronics and
computer-based systems to operate and
control production and service activities.
 It suggests the linking of multiple mechanical
operations to create a system that can be
controlled by programmed instructions.
Key Points:
 Pre-existing processes and methods should

be simplified and/or re-engineered before
any efforts at installing mechanized or
automated systems.
 Computerized material handling systems

should be considered where appropriate for
effective integration of material flow and
information management.
Key Points: ...
 All items expected to be handled

automatically must have features that
accommodate mechanized and automated
handling.
 Treat all interface issues as critical to

successful automation, including equipment
to equipment, equipment to load, equipment
to operator, and control communications.
9. ENVIRONMENTAL
PRINCIPLE
 Environmental impact and
energy consumption should be
considered as criteria when
designing or selecting
alternative equipment and
material handling systems.
 Definition: Environmental
consciousness stems from a desire
not to waste natural resources and
to predict and eliminate the
possible negative effects of our
daily actions on the environment.
9. ENVIRONMENTAL
PRINCIPLE Key Points:
 Containers, pallets and other products used to form
and protect unit loads should be designed for
reusability when possible and/or biodegradability as
appropriate.
 Systems design should accommodate the handling

of spent dunnage, empty containers and other by-
products of material handling.
 Materials specified as hazardous have special

needs with regard to spill protection, combustibility
and other risks.

10. LIFE CYCLE COST
PRINCIPLE
 A thorough economic
analysis should account for
the entire life cycle of all
material handling
equipment and resulting
systems.
 Definition: Life cycle costs

include all cash flows that will
occur between the time the
first dollar is spent to plan or
procure a new piece of
equipment, or to put in place
a new method, until that
method and/or equipment is
7/11/2010
totally replaced.
Dr. Erkan Bayraktar 40
10. LIFE CYCLE PRINCIPLE
Key Points:
 Life cycle costs include capital investment,

installation, setup and equipment programming,
training, system testing and acceptance, operating
(labor, utilities, etc.), maintenance and repair, reuse
value, and ultimate disposal.
 A plan for preventive and predictive maintenance

should be prepared for the equipment, and the
estimated cost of maintenance and spare parts
should be included in the economic analysis.

10. LIFE CYCLE PRINCIPLE
Key Points: ...
 A long-range plan for replacement of the

equipment when it becomes obsolete should
be prepared.
 Although measurable cost is a primary

factor, it is certainly not the only factor in
selecting among alternatives. Other factors
of a strategic nature to the organization and
which form the basis for competition in the
market place should be considered and
quantified whenever possible.
Material Handling: Unit Load
Principle
 Unit load is the unit to be moved or handled
at one time.
 “Picked up and moved between two locations as
a single mass”
 A box, a stack, a pallet
 Unit loads can be contained in totes,
cartons, pallets, pallet boxes, etc.
 Enclosure and stabilization is provided by
strapping, shrinkwrapping, and
stretchwrapping
Unit Load Sizing
 Advantage:
 Handle multiple items -- reduce the number of trips
 Large unit loads
 Heavier equipment, wider aisles, higher floor loading
 Larger amounts of WIP
 Small unit loads
 Increased number of moves, lighter equipment
 Lower amounts of WIP
 Unit load specification is an integral part of material
handling and storage system design
 The type of unit load drives the design of the entire material
handling system.
 Difficult to find optimum designs for real systems

Simple Example
What is the effect of moving different unit load sizes?

Unit Load Sizing

Material Handling
 Pallets
 Style and Size based on:
 Shipping and receiving restrictions
 Size and weight of items on the pallet
 Space restrictions
 Equipment used to move the pallet
 Slave versus non-slave considerations
 Cost, supply, and maintenance
 Aisle widths, door sizes, stacking heights
 Whatever you need, you can get…
 Sizes: 40” x 42” is most popular in the U.S.
 Materials: wood, plastic, steel, corrugated
Obtaining pallets
 Make yourself -
only makes sense
in limited http://www.palletnails.com/images/palletnails-front_400.gif
circumstances…
 Buy (check the

Yellow Pages)
 Lease (e.g., Chep)

http://palletdispenser.com/cnt/pallet-dispenser-p14.jpg
Containers
 Mainly for handling within the

production process
 As with pallets, you can get any design
you want…
 Don’t forget the principles of Lean

Equipment: Pallet jack
http://www.raymondcorp.com/content/images/Hand_Pallet_Truck_Unloading.jpg
Equipment: Forklift
http://www.emmessar.com/images/P1180072.jpg
Design software
http://www.topseng.com/images/epacDesigner.gif
Material Handling
Performance
 “Support efficient production

operations”
 Throughput
 Response time
 Cost
 Space and cube utilization
 Flexibility
 Expandability

Material Handling Cost
 Total Cost of Ownership
 Initial purchase price
 Operating expenses (fuel, disposables, etc.)
 Maintenance costs
 Direct and indirect labor costs
 Miscellaneous associated costs
 Training
 Insurance
 Damage
 Environmental impacts

Material Handling
 Material Move  Method  Equipment
 Equipment Classifications
 Conveyors
 Monorails
 Hoists and Cranes
 Automated Storage and Retrieval Systems
 Industrial trucks
 Pallet jack
 Fork lift
 Automated guided vehicle system
 Containers and supports
 Auxiliary Equipment
 Picture Bank
MH Equipment Taxonomy
 http://www.mhia.org/et/mhe_tax.htm
 Transport Equipment
 Positioning Equipment
 Unit Load Formation Equipment
 Storage Equipment
 Identification and Control Equipment

Transport Equipment
 Equipment used to move material from one location to another
(e.g., between workplaces, between a loading dock and a
storage area, etc.). The major subcategories of transport
equipment are conveyors, cranes, and industrial trucks.
Material can also be transported manually using no
equipment.

Transport Equipment
A. Conveyors B. Cranes
 Chute conveyor C. Industrial Trucks
 Wheel conveyor  Jib crane  Hand truck
 Roller conveyor  Bridge crane  Pallet jack
 Chain conveyor  Gantry crane  Walkie stacker
 Slat conveyor  Stacker crane  Pallet truck
 Flat belt conveyor  Platform truck
 Magnetic belt conveyor  Counterbalanced lift truck
 Troughed belt conveyor  Narrow-aisle straddle truck
 Bucket conveyor  Narrow-aisle reach truck
 Vibrating conveyor  Turret truck
 Screw conveyor  Order picker
 Pneumatic conveyor  Sideloader
 Vertical conveyor  Tractor-trailer
 Cart-on-track conveyor  Personnel and burden carrier
 Tow conveyor  Automatic guided vehicle
(AGV)
 Trolley conveyor
 Power-and-free conveyor
 Monorail
 Sortation conveyor

A. Transport Equipment -
Conveyors
Roller Conveyor Belt Conveyor

Roller Conveyor
(Silindirli Konveyor)
 Rollers attached to side rails supported by a steel frame.
 The type of roller (steel, rubber, and wood) and the spacing of
rollers depend on the type of load to be carried.
 It can be gravity-operated or power-driven.
 Gravity-operated conveyors have a slight downward slope.
 On the power-driven conveyor, some of the rollers are driven
by chains or belts to provide the motion for the material on the
conveyor

65
Belt Conveyor (Bant
Konveyor)
 It is an endless belt, driven by power rollers or
drums at one or both ends and supported by flat
beds or rollers. The belt is made of rubber, woven
wires, metal or fabric. Occasionally it can be
magnetic. Portable belt conveyors are so popular
they come in standard units.

66
Wheel Conveyor
 It consists of wheels attached to
side rails supported by a steel
frame. The load is carried on the
wheels, each of which rotates
about a fixed axis. It can be
gravity-operated or power-
driven. Wheels can be made of
steel, aluminum, or plastic. Most
flat-bottomed surfaces will
convey satisfactorily on wheel
conveyors. If the part does not
have a flat surface, it may ride in
a box or on a small pallet.

67
Chain Conveyor
 An endless chain transmits power from a motor to a carrying
surface or unit. The carrying unit can be quite varied.
 Specific examples of chain conveyors are
 flight conveyors (flights are "blades" attached perpendicular to

the chain), (bolmeli konveyor)
 slat conveyors (citali konveyor)
 apron conveyors, (apron konveyor)
 bucket conveyors, (sepetli konveyor)
 An apron conveyor is similar to a slat conveyor, the only

difference being the partial overlapping of the slats in the apron
conveyor to provide a continuous moving surface.

68
69
Chute Conveyor
(Kaydirakli Konveyor)
A chute conveyor is a
slide, generally made
of metal, which guides
materials as they are
lowered from a higher-
level to a lower-level
workstation. The
shape of the chute
can be straight or
spiral to save space.

70
Tow Conveyor Trolley Conveyor
(Cekicili Konveyor) (Troley Konveyor)

71
•fapp05b 26
Overhead Monorail
A track to transport carrying
devices such as trolleys and
hooks. The track itself can form
a closed loop. Often used in Telpher
transporting units to spray paint
A light car suspended from and
booths or baking ovens.
running on aerial cables. It is
Generally placed at 8 to 9 feet
usually propelled by electricity.
from floor

77
...
ADVANTAGES:
 Adjustable speed
 High capacity (moving a large number of items)
 Permits other activity (processing & inspection)
 Versatile (floor or overhead)
 Temporary storage of loads between work stations
 Automatic load transfer (less supervision)
 Straight line paths or aisles are not required
 Utilization of the cube (overhead conveyors)
DISADVANTAGES:
 Fixed paths serve limited areas
 Bottlenecks can develop
 Hinder movement of mobile equipment on factory floor

78
B. Transport Equipment -
Cranes
Jib Crane
Bridge Crane
7/11/2010 Gantry Crane

Dr. Erkan Bayraktar 79
Hoist (Palanga)
 It is a lifting
device attached
to monorails,
cranes, or a
fixed point. It
can be powered
manually or by
electric or
pneumatic
motors.
80
Jib Crane (Kollu Vinc)
Lifting device (hoist) traveling on a horizontal boom
mounted on a vertical mast. The horizontal boom can
rotate to achieve a wide range of coverage

81
Bridge Crane (Koprulu
Vinc)
Lifting device mounted on a
bridge, which is supported at
each end by tracks riding on or
suspended from runways
installed at right angles to the
bridge

82
Gantry Crane Tower Crane
Basically a bridge crane with A hoist that travels on a
the boom supported at one or horizontal boom attached at
both ends by vertical gantry one end to a vertical post, with
legs traveling on rails installed the other end of the boom
at ground level (instead of on being supported by a guy line
an overhead runway) to the top of the post

83
Stacker Crane
(Istifleme Vinci)
 A crane with a vertical

beam suspended from a
carriage, mounted on a
device similar to a
bridge crane, and fitted
with forks or a platform
to permit it to place
items into or retrieve
items from storage racks
on either side of the
aisle it traverses
84
ADVANTAGES
1. Lifting as well as transferring of materials
2. Heavy loads
3. Loading & unloading operations
DISADVANTAGES
1. Large investments
2. Serve limited area
3. Utilization not very high (used for short
periods)
85
Transport Equipment –
Industrial Trucks
Unit Load AGV

Hand Lift Truck/Pallet Jack Tractor-Trailer Train
(Elle Kaldirmali Palet Krikosu) (Romorklu Traktor Treni)
This is a hand-operated truck that This is a series of carts pulled
can raise loads hydraulically or by a self-propelled tractor. It
mechanically to clear the floor is mainly used for stop&go
before transporting them to the operations carrying loads
desired destination within 200 to 300 feet

Power-Driven Platform Truck Forklift Truck
(Catalli Kaldirma Kamyonu)
(Guc Unitesiyle Calisan
Platform Kamyon) A forklift truck is an operator-
ridden, power-driven truck
A much larger device than the with forks in front that lift and
power-driven hand-truck. It carries carry heavy loads on skids or
load and operator. A diesel or pallets
gasoline engine or an electric motor
supplies power

88
Side-loader Truck
(Yandan Yuklemeli Kamyon)
Forks on the side
Turret Truck (Kucuk Kuleli Kamyon) with

forks that can rotate left or right to place or pick up
a load without the truck having to turn in an aisle

89
Narrow Aisle Straddle Truck with out-riggers to
balance loaded truck
Narrow Aisle Reach Truck fork truck with
telescoping forks

90
...
ADVANTAGES
1. Not required to follow fixed paths
2. Capable of loading, unloading & lifting, as well as
transferring
3. Highly utilized due to their flexibility
DISADVANTAGES
1. Cannot handle heavy loads
2. Limited capacity per trip
3. Most must be driven by an operator
4. Cannot combine handling with processing & inspection

91
Automated Guided Vehicle System
An AGV is a computer-controlled vehicle that moves
along a predetermined path and performs certain duties,
according to instructions sent by a system operator
located at a station.

Positioning Equipment
 Positioning equipment is used to handle material at a single location so
that the material is in the correct position for subsequent handling,
machining, transport, or storage. Unlike transport equipment, positioning
equipment is usually used for handling at a single workplace. Material
can also be positioned manually using no equipment. The major types of
positioning equipment are:
 Manual (no equipment)
 Lift/tilt/turn table
 Dock leveler As compared to manual handling, the use
 Ball transfer table
 Rotary index table of positioning equipment can provide the
 Parts feeder following benefits:
 Air film device • raise the productivity
 Hoist
 Balancer • improve product quality and limit
 Manipulator damage
 Industrial robot • reduce fatigue and injuries
Positioning Equipment
Lift Table Hoist

Robot

Unit Load Formation
Equipment
 Equipment used to restrict materials so that they maintain their
integrity when handled a single load during transport and for storage.
If materials are self-restraining (e.g., a single part or interlocking
parts), then they can be formed into a unit load with no equipment.
Self-restraining (no equipment)
 Pallets
Advantages of unit loads:
 Skids
• More items can be handled at the same time, thereby
 Slipsheets
reducing the number of trips required and, potentially,
 Tote pans
reducing handling costs, loading and unloading times,
 Pallet boxes/skid boxes
and product damage.
 Bins/baskets/racks
• Enables the use of standardized material handling
 Cartons
equipment.
 Bags
Disadvantages of unit loads:
 Bulk load containers
• Time spent forming and breaking down the unit load.
 Crates
• Cost of containers/pallets and other load restraining
 Intermodal containers
materials used in the unit load
 Strapping/tape/glue
• Empty containers/pallets may need to be returned to
 Shrink-wrap/stretch-wrap
their point of origin
 Palletizers
Unit Load Formation
Equipment

Equipment: Dispenser
http://www.packexpo.com/companyfiles/36747/Pallet-Dispenser.jpg
Equipment: Palletizer
http://www.westfaliausa.com/asset/Maple Vail.jpg
Equipment: Stretch wrapper
http://www.uline.com/images/products/Medium/HD_8800_M.JPG

Equipment: Straps
http://www.staber.com/images/Manufacturing
Photos/Washer boxed on pallet 2.jpg http://www.sunviewvineyards.com/pictures/grape pallet.JPG
Equipment: Storage of empties
http://www.cisco-
eagle.com/storage/rack/Palletrack/ceiling-hung-rack.jpg http://www.polarinertia.com/jan05/images/pallets/pall1
2.jpg

Hazards - not just splinters
http://www.sbcfire.org/doc/pressreleases/pallet_fire2.jpg

Alternative: slipsheets (1)
http://www.ie.ncsu.edu/kay/mhetax/UnitEq/Images/Slipsheet.gif
Alternative: slipsheets (2)
http://slipsheet.net/cnt/slipsheet-p03.jpg
Alternative: skids
http://www.sethwhite.org/images/summit2004/kangerlussuaq/pallet
Storage Equipment
 Equipment used for holding or buffering materials over a period of
time. Some storage equipment may include the transport of materials
(e.g., the S/R machines of an AS/RS, or storage carousels). If
materials are block stacked directly on the floor, then no storage
equipment is required.
The most common reason for storing a product is
 Block stacking (no equipment)
to buffer against variation so that the organization
 Selective pallet rack
operates more efficiently.
 Drive-through rack
Other potential reasons for storage include: time
 Drive-in rack
bridging—allows product to be available when it
 Flow-through rack
is needed (e.g., storing spare machine parts at the
 Push-back rack
facility); processing—for some products (e.g.,
 Sliding rack
wine), storage can be considered as a processing
 Cantilever rack
operation because the product undergoes a
 Stacking frame
required change during storage; and securing—
 Shelves/bins/drawers
e.g., nuclear waste storage.
 Storage carousel
 Automatic storage/retrieval (AS/RS)
 Split case order picking system Dr. Erkan Bayraktar
7/11/2010 106
 Mezzanine
Storage Equipment

Identification and Control
Equipment
 Identification and control equipment is used to collect and
communicate the information that is used to coordinate the
flow of materials within a facility and between a facility and its
suppliers and customers. The major types of identification and
communication equipment are:
 Manual (no equipment)
 Bar codes
 Radio frequency (RF) tag
 Magnetic stripe
 Machine vision
 Portable data terminal
 Electronic data interchange (EDI)/Internet

Material Handling Equipment
Resources
 Material Handling Picture Bank

 http://www.mhia.org/cicmhe/picturebank/
 MHE Taxonomy
 http://www.mhia.org/et/mhe_tax.htm

Facilities Planning
Facility Location
11.07.2010 1
A Sequence of Decisions
Political, social, economic stability;
National Decision Currency exchange rates; . . . . .
Climate; Customer concentrations;

Regional Decision Degree of unionization; . . . . .
Transportation system availability;

Community Decision
Preference of management; . . . . .
Site size/cost; Environmental impact;

Site Decision
Zoning restrictions; . . . . .
11.07.2010 2
Factors Affecting the Location
Decisions
 Economic
 Site acquisition, preparation and
construction costs
 Labor costs, skills and availability
 Utilities costs and availability
 Transportation costs
 Taxes
11.07.2010 3
Factors Affecting the Location
Decision
 Non-economic
 Labor attitudes and traditions
 Training and employment services
 Community’s attitude
 Schools and churches
 Recreation and cultural attractions
 Amount and type of housing available
11.07.2010 4
Transport Strategy
 Integrate Transport Systems

 Modular containers enable
 Air - Ship - Rail - Road trans-shipment
 Transport Fleets
 Own vehicles
 Haulage contractors
 Shared loads
 Return loads
11.07.2010 19
Facility Types and Their
Dominant Locational Factors
 Mining, Quarrying, and Heavy  R&D and High-Tech
Manufacturing Manufacturing
 Near their raw material sources  Ability to recruit/retain
 Abundant supply of utilities scientists, engineers, etc.
 Land and construction costs  Near companies with similar
are inexpensive technology interests
 Light Manufacturing  Retailing and For-Profit
 Availability and cost of labor Services
 Warehousing  Near concentrations of
target customers
 Proximity to transportation
facilities  Government and
 Incoming and outgoing
Health/Emergency Services
transportation costs  Near concentrations of
constituents
11.07.2010 25
Some Reasons the Facility
Location Decision Arises
 Changes in the market  Changes in the
 Expansion environment
 Contraction  Regulations and laws
 Geographic shift  Attitude of the
 Changes in inputs community
 Labor skills and/or  Changes in technology
costs  . . . more
 Materials costs and/or
availability
 Utility costs
11.07.2010 26
Analyzing Service Location
Decisions
Consumer Behavior Why do customers buy our
Research products and services?
Who are our customers?

Market Research What are their characteristics?
Data Gathering for Where are our customers concentrated?

Each Location Alternative What are their traffic/spending patterns?
Revenue Projections for What are the economic projections?

Each Location Alternative What is the time-phased revenue?
Profit Projections for What are the projected revenues

Each Location Alternative less time-phased operating costs?
11.07.2010 27
Analyzing Industrial Facility
Locations
Factors that tend to dominate the

industrial-facility location decision are:
 Transportation costs
 Labor cost and availability
 Materials cost and availability
 Utilities cost
11.07.2010 30
Analyzing Industrial Facility
Locations
 Locating a Single Facility

 A simple way to analyze alternative locations is
conventional cost analysis
 Pros – ease of communication and understanding
 Cons – time value of money ignored and
qualitative factors not considered
 Locating Multiple Facilities
 More sophisticated techniques are often used:
 Linear programming, computer simulation, network
analysis, and others
11.07.2010 31
Qualitative Factors in Location
Decisions
Often-important qualitative factors include

 Housing
 Climate
 Community activities
 Education and health services
 Recreation
 Churches
 Union activities
 Community attitudes
11.07.2010 32
Integrating Qualitative &
Quantitative Factors
 Managers often wrestle with the task of

trading off qualitative factors against
quantitative ones
 Methods for systematically displaying the
relative advantages and disadvantages,
both qualitative and quantitative, of each
location alternative have been developed
 The relative-aggregate-scores approach is
one such method
11.07.2010 33
Relative-Aggregate-Scores
Approach
Quantitative and Qualitative Factors
Location A Location B
Econ. Wgt. Econ. Wgt.
Factor Weight Data Score Score Data Score Score
Prod.cost/ton .45 $65 .923 .415 $60 1.000 .450
Transp.cost/ton .35 $18 1.000 .350 $21 .857 .300
Labor Avail. .15 .700 .105 .500 .075
Union Activity .05 .450 .023 .750 .038
Total Score .893 .863
11.07.2010 34
11.07.2010 35
Cont’d
11.07.2010 36
11.07.2010 37
Globalization and Geographic
Dispersion of Operations
 Globalization describes business
deployment of facilities and operations
around the world.
 Banking, law, information services,airlines,
education, consulting, restaurant services
are particularly active globally
 With Growth and Group management,
Globalization is one of the "three Gs" that
form the base of the Company's long-term
vision
11.07.2010 38
Reasons for Globalization
 Improved transportation and

communication technologies
 Loosened regulations on financial
systems
 Increased demand for imports
 Reduced import quotas and trade
barriers
 Tax advantages
11.07.2010 39
Disadvantages of
Globalization
 Relinquish proprietary technology

 Political risks
 Employee skills maybe lower requiring
additional training
 When operations are scattered,
customer response time may be longer
 Effective cross functional connections
are difficult
11.07.2010 40
Example:what is the distance between Erie and
State College?
Erie
A(50, 185) North
200
150
Scranton
y (miles)
State College
100
B (175, 100)
Pittsburgh
Harrisburg
50 Philadelphia
Uniontown
0
50 100 150 200 250 300
11.07.2010 x (miles) East 41
Load-Distance Method
 Distance Measures
 Euclidean distance is the straight line
distance or the shortest possible path
between two points
d AB  ( x A  xB )  ( y A  y B )
2 2
11.07.2010 42
 Distance Measures
 Rectilinear distance measures distance
between two pointes with a series of 90
degree turns, as along city blocks
d AB  x A  xB  y A  y B
11.07.2010 43
 Flow path distance

 Actual path traversed between two
points.
 What is the distance between A and B?
A B
11.07.2010 44
Facility Location Models
 Number of Facilities (Single or Multiple)
 Capacitated or Uncapacitated
 Continuous or Discrete Location Space
 Distance Metric
 Rectilinear
 Euclidean (provides a lower bound on distance)
 Actual Distance
 Objective Criteria
 Single (Usually Total Cost: Fixed plus transportation)
 Multiple
 Objective Function
 Minisum
 Minimax
11.07.2010 45
Facility Location Models
 Single Facility Location Problem

 Uncapacitated, Continuous, Minisum of
transportation costs, i.e., Weighted distances.
 Rectilinear Metric
 Median condition
 Squared Euclidean
 Centroid or center-of-gravity solution
 Euclidean
 Weiszfeld's procedure
11.07.2010 46
Single Facility Location
Problem
X = (x,y)  Location of new facility

Pi = (ai,bi)  Location of existing
facility i
Minimize
11.07.2010 47
Problem
 Rectilinear Distance
 Separable in x and y — therefore, the optimal

values of x and y can be found independently.
11.07.2010 48
Problem
 Rectilinear Distance
 Optimal value will be such that the new facility
 has the same x- (y-) coordinate as an existing facility,
and
 is located such that no more than ½ of the total weight
is located to the left of x (y) and no more than ½ is
located to the right of x (y).
 This is known as the median condition.
 Note: This procedure does not consider the
distance but only the weights.
11.07.2010 49
Problem
Rectilinear Distance — Example
Machine Location Trips/Day
1 20,46 20
2 15,28 15
3 26,35 30
4 50,20 18
5 45,15 20
6 1,6 15
Assume that the cost/unit distance traveled
is the same for all facilities (machines).
11.07.2010 50
Problem
Rectilinear Distance — Example (cont.)

x - coordinate solution
Machine Coordinate Weight Partial sum

6 1 15 15
2 15 15 30
1 20 20 50 < 118/2
 3 26 30 80 > 118/2
5 45 20 100
4 50 18 118
118
x = a3= 26
11.07.2010 51
Problem
Rectilinear Distance — Example

(cont.)
y - coordinate solution
11.07.2010 52
Problem
Rectilinear Distance — Example (cont.)
Optimal Location = (26,28)
f(26,28) = 2776 Verify!

You can easily evaluate other alternative locations,
if
(26,28) is not feasible, and pick the one with the
lowest f(x,y) value.
Check Fig. 10.1 from the textbook

11.07.2010 53
Single Facility Location Problem
w/Euclidean Distance
North
Health-Watch
6
(5.5, 4.5)
[10] E
5 C
A (8, 5)
(2.5, 4.5) [10]
4
[2]
y (miles)
3 B G
(2.5, 2.5) D F
2 (9, 2.5)
[5] (5, 2) (7, 2) [14]
[7] [20]
1
0
1 2 3 4 5 6 7 8 9 10
x (miles) East
11.07.2010 54
Load-Distance Locate at Locate at
Method (5.5, 4.5) (7.0, 2.0)
Census (x,y) Population Distance( wd Distance wd

Tract (w) d) (w)
A (2.5,4.5) 2 3+0=3 6 4.5+2.5=7 14
B (2.5,4.5) 5 3+2=5 25 4.5+0.5=5 25
C (5.5,4.5) 10 0+0=0 0 1.5+2.5=4 40
D (5,2) 7 0.5+2.5=3 21 2+0=2 14
E (8,5) 10 2.5+0.5=3 30 1+3=4 40
F (7,2) 20 1.5+2.5=4 80 0+0=0 0
G (9,2.5) 14 3.5+2=5.5 77 2+0.5=2.5 35
Total 239 Total 168

11.07.2010 55
Center of Gravity
 To find the candidate locations in the target area,
we can use the center of gravity as a starting point.
We denote center of gravity by (x*,y*)
n n
 w x  i i  w  y  i i
x*  i 1
n
y*  i 1
n
 (w ) i  (w )
i 1
i
i 1
 Example: What is the target area’s center of gravity

for the Health-Watch medical facility in the last
example?
11.07.2010 56
11.07.2010 57
11.07.2010 58
11.07.2010 59
Minimax Location Problem
11.07.2010 60
Rectilinear Minimax Location
Problem
11.07.2010 61
Rectilinear Minimax Location
Problem
11.07.2010 62
11.07.2010 63
11.07.2010 64
Locating a Facility Within a
Network of Facilities
 The multiple-facility location problem has

three dimensions:
 location,
 allocation, and
 capacity.
 We only focus on the allocation issue:
 Determine the allocation pattern that minimizes
the cost of shipping products from two or more
plants, or sources of supply, to two or more
warehouses, or destinations.
11.07.2010 65
The Transportation Problem
 In general, a transportation problem is

specified by the following information:
 A set of m supply points from which a
good is shipped.
 A set of n demand points to which the
good is shipped.
 Each unit produced at supply point i and
shipped to demand point j incurs a
variable cost cij
11.07.2010 66
The Transportation Problem
Supplies Plants Warehouse Demands
200
1
400 Pheonix
2 400
500 Atlanta
3 300
11.07.2010 67
Transportation Method
Warehouse
1 2 3 CAPACITY
Plant
5 6 5.40 400
Phoenix
7 4.6 6.6 500
Atlanta
200 400 300 900
DEMAND
11.07.2010 68
Homework
 Chapter 10
 10.3
 10.4
 10.6
11.07.2010 69
Chinese Proverb
He Who Asks is a Fool for

Five Minutes, but He Who
Does Not Ask Remains a Fool
Forever.
11.07.2010 70
Check out
 http://www.abfs.com/Default.asp?bhcp=1
 http://www.fta.co.uk/
 http://www.shipguide.com/
 Wikipedia, the free encyclopedia
http://en.wikipedia.org/wiki/Transport
 http://www.schoolscience.co.uk/petroleum/vv2/ftpanos.html
 http://www.munck-cranes.no/
 http://www.howstuffworks.com/hydraulic-crane.htm
 http://www.implosionworld.com/gallery.htm
 http://crimeprevention.rutgers.edu/crime/emp_theft/warehouse
s/warehouses.htm
 http://research.haifa.ac.il/~archlgy/patrichj/warehouse/wareho
use.html
11.07.2010 71

FP II Single

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

FP II Single

Uploaded by

Copyright:

Available Formats

Facilities Planning

11.07.2010 Dr. Erkan Bayraktar 3

 Optimal solution procedures are

11.07.2010 Dr. Erkan Bayraktar 4

 Which layout is best?

11.07.2010 Dr. Erkan Bayraktar 5

 Distance usually measured rectilinearly, between centroids

11.07.2010 Dr. Erkan Bayraktar 6

11.07.2010 Dr. Erkan Bayraktar 8

 Centroid-to-centroid distances can be

11.07.2010 Dr. Erkan Bayraktar 10

11.07.2010 Dr. Erkan Bayraktar 11

 Keep same department and facility

11.07.2010 Dr. Erkan Bayraktar 12

11.07.2010 Dr. Erkan Bayraktar 13

11.07.2010 Dr. Erkan Bayraktar 14

 Useful in group evaluation situations

11.07.2010 Dr. Erkan Bayraktar 16

Based on objective function

 fij = amount of flow (or, number of trips or unit loads) between

11.07.2010 Dr. Erkan Bayraktar 19

xij  1, if department s i and j are adjacent

11.07.2010 Dr. Erkan Bayraktar 20

Normalized adjacency score

11.07.2010 Dr. Erkan Bayraktar 21

Based on format of layout

11.07.2010 Dr. Erkan Bayraktar 23

 “Points and lines” representation is not

11.07.2010 Dr. Erkan Bayraktar 24

11.07.2010 Dr. Erkan Bayraktar 25

 Unit Square Area approximation can also be

11.07.2010 Dr. Erkan Bayraktar 26

11.07.2010 Dr. Erkan Bayraktar 27

 AutoCAD based add-on

11.07.2010 Dr. Erkan Bayraktar 29

Based on Primary function:

11.07.2010 Dr. Erkan Bayraktar 31

11.07.2010 Dr. Erkan Bayraktar 33

11.07.2010 Dr. Erkan Bayraktar 35

11.07.2010 Dr. Erkan Bayraktar 36

Computerized Relative Allocation

 Perhaps the most famous improvement algorithm

11.07.2010 Dr. Erkan Bayraktar 39

 Requires the assumptions that:

11.07.2010 Dr. Erkan Bayraktar 40

11.07.2010 Dr. Erkan Bayraktar 41

11.07.2010 Dr. Erkan Bayraktar 42

11.07.2010 Dr. Erkan Bayraktar 43

11.07.2010 Dr. Erkan Bayraktar 44

11.07.2010 Dr. Erkan Bayraktar 45

11.07.2010 Dr. Erkan Bayraktar 46

11.07.2010 Dr. Erkan Bayraktar 47

11.07.2010 Dr. Erkan Bayraktar 48

11.07.2010 Dr. Erkan Bayraktar 50

11.07.2010 Dr. Erkan Bayraktar 51

11.07.2010 Exchange dept.#2Dr.with dept. # 1,3,and 4

11.07.2010 Dr. Erkan Bayraktar 53

11.07.2010 Dr. Erkan Bayraktar 55

11.07.2010 Dr. Erkan Bayraktar 56

2. A swap/exchange selection procedure similar to that of

3. If any improving exchange is selected, then the two

4. REPEAT 3 and 4 until no improvement can be made.

11.07.2010 Dr. Erkan Bayraktar 57