Solving a group layout design model of a dynamic cellular manufacturing system with alternative process routings, lot splitting and flexible reconfiguration by simulated annealing

This paper presents a novel mixed-integer non-linear programming model for the layout design of a dynamic cellular manufacturing system (DCMS). In a dynamic environment, the product mix and part demands are varying during a multi-period planning horizon. As a result, the best cell configuration for one period may not be efficient for successive periods, and thus it necessitates reconfigurations. Three major and interrelated decisions are involved in the design of a CMS; namely cell formation (CF), group layout (GL) and group scheduling (GS). A novel aspect of this model is concurrently making the CF and GL decisions in a dynamic environment. The proposed model integrating the CF and GL decisions can be used by researchers and practitioners to design GL in practical and dynamic cell formation problems. Another compromising aspect of this model is the utilization of multi-rows layout to locate machines in the cells configured with flexible shapes. Such a DCMS model with an extensive coverage of important manufacturing features has not been proposed before and incorporates several design features including alternate process routings, operation sequence, processing time, production volume of parts, purchasing machine, duplicate machines, machine capacity, lot splitting, intra-cell layout, inter-cell layout, multi-rows layout of equal area facilities and flexible reconfiguration. The objective of the integrated model is to minimize the total costs of intra and inter-cell material handling, machine relocation, purchasing new machines, machine overhead and machine processing. Linearization procedures are used to transform the presented non-linear programming model into a linearized formulation. Two numerical examples taken from the literature are solved by the Lingo software using a branch-and-bound method to illustrate the performance of this model. An efficient simulated annealing (SA) algorithm with elaborately designed solution representation and neighborhood generation is extended to solve the proposed model because of its NP-hardness. It is then tested using several problems with different sizes and settings to verify the computational efficiency of the developed algorithm in comparison with the Lingo software. The obtained results show that the proposed SA is able to find the near-optimal solutions in computational time, approximately 100 times less than Lingo. Also, the computational results show that the proposed model to some extent overcomes common disadvantages in the existing dynamic cell formation models that have not yet considered layout problems.