Final review lecture (INDU 421 2013)

Question #1:

A new warehouse serving 18 existing manufacturing facilities should be built in a way that the
total flow between the warehouse and the facilities is minimized. The facilities are connected by
a network of roads and the flow between them is represented by the weights as shown in the
network below. Where should be the new warehouse located?

a) Use Chinese algorithm

b) Use Majority algorithm

 Solution:
a) Chinese algorithm:
Solution by Chinese algorithm is in the point X*[4,4].

b) Majority algorithm:

Half the weight = 70/2 = 35

Solution by Majority algorithm is in the point X*[4,4].

Question #2:

Solve the problem above if the objective is to minimize maximum weighted distance between the
new warehouse and any other existing facility. Consider only first five facilities as shown in the
network below.
 X,Y w
1 1,5 6
2 2,5 4
3 2,3 3
4 3,6 2
5 3,2 6

 Solution:

Create distance matrix:

1 2 3 4 5
1 - 5 3 5 5
2 - 4 2 4
3 - 4 4
4 - 4
5 -

Calculate bij for each pair of i and j:

1 2 3 4 5
1 - 12 6 7.5 15
2 - 6.85 2.66 9.6
3 - 4.8 8
4 - 6
5 -
6*4*5/(6+4)=12

Max value b15 = 15 corresponds to vertices 1 and 5.

X* is located on the path connecting vertex 1 and vertex 5.

Question 3:

Manufacturing company plans to build a warehouse somewhere near to its three existing plants.
The coordinates of the existing plants and the number of trips to the warehouse a day are given
below.

a) Determine the location for the warehouse which minimizes the maximum distance
between the warehouse and any existing facility.
b) What is the maximum distance?
c) Determine the location for the warehouse which minimizes the total cost.
d) Calculate the total cost if the warehouse is built there.
e) Plot the iso-cost contour line which passes through the point [20,35].
f) It was found that the warehouse cannot be built in the omptimal location. Based on the
iso-cost contour line, suggest which of the following locations should be preferably
considered: [20,35], [20,25], [20,25], [40,35] and [40,20]

a b w
1 20 20 2
2 40 25 3
3 25 35 4

 Solution:
a) Use minimax method

a b a+b -a+b
1 20 20 40 0
2 40 25 65 -15
3 25 35 60 10

c1 = minimum (ai + bi) = 40

c2 = maximum (ai + bi) = 65
c3 = minimum (-ai + bi) = -15
c4 = maximum (-ai + bi) = 10
c5 = max (c2-c1, c4-c3) = max (25, 35) = 35

Optimum solution for the new facility location is on the line segment connecting the
points :
(x1*, y1*) = 0.5(c1-c3, c1+c3+c5) = 0.5 (55,60) = (27.5, 30)
(x2*, y2*) = 0.5(c2-c4, c2+c4 - c5) = 0.5 (55,-25) = (27.5, -12.5)

b) Max distance equals c5 /2 = 17.5

 c) Use minisum method

Determine X coordinate Determine Y coordinate

a w ∑w b w ∑w
1 20 2 2 1 20 2 2
3 25 4 6 2 25 3 5
2 40 3 9 3 35 4 9
∑w /2=4.5 ∑w /2=4.5
X=25 Y=25

The best location is N [25,25]

d) Total cost: m m
f ( x)   w i x  ai   wi y  bi
i 1 i 1

TC=2[(25-20)+(25-20)] + 3[(40-25)+(25-25)] + 4[(25-25)+(35-25)] = 105

e) Iso-cost lines:

Assign weights:
Calculate net pulls:

Calculate slopes for each region:

Plot the contour line based on a slope in each region starting from [20,35]:

35

25

f) Alternative locations

35

25

Out of the new locations the ones which should be also considered are [20,25] and [25,20]. Both
have lower cost than the other three options.
Question 4:

Consider the previous question. The management has decided that in order to reduce the total
costs it may build more than 1 warehouse. Determine the optimal number of warehouses and
which plants should be served by which warehouse. It costs 40 units to build each warehouse.

 Solution:

Cases to consider:

# of warehouses Facilities served by each

warehouse
A 1 1–2-3
B 2 1 2-3
C 2 1-2 3
D 2 1-3 2
E 3 1 2 3

Use minisum method for each case.

Case A: 1, 2, 3

1 warehouses: NA [25,25] serves plants 1,2 and 3

Total cost:

TC= 105 + 40 = 145

Case B: 1 - 2, 3

Determine X coordinate Determine Y coordinate

a w ∑w b w ∑w
3 25 4 4 2 25 3 3
2 40 3 7 3 35 4 7
∑w /2=3.5 ∑w /2=3.5
X=25 Y=35

2 warehouses: NB1 [20,20] serves plant 1

NB2 [25,35] serves plants 2 and 3
m m
Total cost: f ( x)   w i x  ai   wi y  bi
TC = 3(15+10) + 4(0) + 2x40 = 155 i 1 i 1
Case C: 1, 2 - 3

Determine X coordinate Determine Y coordinate

a w ∑w b w ∑w
1 20 2 2 1 20 2 2
2 40 3 5 2 25 3 5
∑w /2=2.5 ∑w /2=2.5
X=40 Y=25

2 warehouses: NC1 [40,25] serves plants 1 and 2

NC2 [25,35] serves plant 3
Total cost:
TC = 2(20+5) + 3(0) + 2x40 = 130

Case D: 1,3 - 2

Determine X coordinate Determine Y coordinate

a w ∑w b w ∑w
1 20 2 2 1 20 2 2
3 25 4 6 3 35 4 6
∑w /2=3 ∑w /2=3
X=25 Y=35

2 warehouses: ND1 [25,35] serves plants 1 and 3

ND2 [40,25] serves plant 2
Total cost:
TC = 2(5+15) + 4(0) + 2x40 = 120

Case E: 1-2-3

3 warehouses: NE1 [20,20] serves plant 1

NE2 [40,25] serves plant 2
NE3 [25,35] serves plant 3
Total cost:
TC = 3x40 = 120

In order to minimize costs the company should either build 3 warehouses, one for each plant or 2
warehouses, one for plants 1and 3 and one for plan 2.
Question 5:

Facility has 5 departments. Given the relationship chart below determine the most suitable layout
for the facility. Consider A=4, E=3, I=2, O=1, U=0, X=-4. If the departments are only touching
by one point, consider half weight.

a) Find TCR values

b) Clearly indicate the sequence in which the departments are entered into the layout.
c) Use CORELAP to find the best layout.

Relationship chart:

1 2 3 4 5
1 - E A I E
2 - I O I
3 - X U
4 - U
5 -

 Solution:

a) TCR values

1 2 3 4 5 1 2 3 4 5 TCR Order
1 - E A I E - 3 4 2 3 12 1
2 E - I O I 3 - 2 1 2 8 3
3 A I - X U 4 2 - -4 0 2 2
4 I O X - U 2 1 -4 - 0 -1 5
5 E I U U - 3 2 0 0 - 5 4

b) Sequence

Sequence: 1 - 3 – 2 - 5 - 4
 a) Procedure for the layout

2 4 2 3?
4 1 4 1-3 => 4
2 4 2

2?
1.5 4 3.5 1
1-2 => 3
3 1 3 2 3-2 => 2
1.5 4 3.5 1
There is a mistake here. The department 5
should have been placed here,
because 4 is the highest Placing Rating!
1 2 1 5?

3.5 2 3.5 0 1-5 => 3

2-5 => 2
4 1 3 0 3-5 => 0
1.5 3 1.5 0

0.5 1 0.5 0 4?

2 2 5 -2 1-4 => 2
2-4 => 1
3 1 3 -4 3-4 => -4
1 2 -3 -2 5-4 => 0

4 2 5
1 3
Question #6:

Suppose the following layout is provided as the initial layout for CRAFT. The flow-between
matrix and the distance matrix are given below.

a) Given the data and the initial layout, which department pairs will NOT be considered for
exchange?
b) Compute the cost of the initial layout
c) Computed the estimated layout cost assuming that departments E and F are exchanged.
d) Recommend if you would exchange the departments. If the change is recommended show
the new layout and calculate the new cost.

 Solution:

a) The areas of the departments are: A=4, B=8, C=6, D=6, E=8 and F=4. The departments A and
F have the same area, also C and D and also B and E. The departments which can be exchanged
are only those which are either adjacent or of the same size. Therefore, the department pairs
which cannot be exchanged by CRAFT are: AD, AE, BF and CF.

b) The initial layout cost:

TC=(8*25)+(4*50)+(5*25)+(2*50)+(1*25)+(6*45)+(4*30)=1040

c) Estimated cost of the exchange of E and F:

Distance matrix for the cost calculation

A B C D E F
A - 25 80
B - 25 60
C - 55
D - 25
E - 30
F -
Total estimated cost:

TC=(8*25)+(4*80)+(5*25)+(2*60)+(1*55)+(6*25)+(4*30)=1090

The cost is higher, so the exchange is not recommended.

Question # 7:

Using BLOCPLAN’s procedure, convert the following From-to chart to a Relationship chart:

From-to chart:

Solution:

Flow-between chart:

A B C D E F G H
A – 9 0 3 0 10 0 0
B – 0 9 5 0 0 0
C – 0 4 0 4 0
D – 1 4 20 7
E – 0 0 0
F – 0 0
G – 20
H –

The highest value is 20

20 / 5 = 4

5 intervals, each with 4 units are created:

  17 to 20 units …..A
 13 to 16 units …..E
 9 to 12 units …....I
 5 to 8 units ……...O
 0 to 4 units ..……U

Relationship chart:

A B C D E F G H
A – I U U U I U U
B – U I O U U U
C – U U U U U
D – U U A O
E – U U U
F – U U
G – A
H –

Question #8:

The dimensions of a facility with 9 departments are 60mx100m. It was decided to improve its
layout and that the MCRAFT algorithm is the most appropriate one for this task.

a) Show two options for the MCRAFT input layout based on different number of bands.
Always clearly show the sequence of placing the departments in the layout.
b) Which layout will you use as an initial input into MCRAFT?

Department Area (m2)

8 3 1 60
5 7 2 40
3 40
9 6 2 4 60
4 1 5 80
6 120
7 80
8 80
9 40
Solution:
a) Two different solutions based on 2 and 3 bands.
2 bands:

8 3
5 7

9 6 2
4 1

Sequence of placing the departments in the layout: 8-5-3-7-2-1-4-6-9

Band width; 60m / 2 =30m

8 5 7
3

9 6 4 1

3 bands:

8 3
5 7

9 6 2
4 1

Sequence of placing the departments in the layout: 8-5-3-7-2-6-9-4-1

Band width; 60m / 3 =20m

8 5 3

2 7
6

9 4 1
 b) Which layout(s) will you use as an initial input into MCRAFT?

The best strategy is to use both layouts as initial inputs, to generate 2 solutions and to
evaluate both alternatives afterwards.

Question #9:

Consider warehouse below. 40 bays (20ft x 20ft) are available for storage. Six product families
are to be stored. Products are received from Dock1 and are shipped out Dock 2. The area
requirement and weekly load rate are below. Determine the layout that will minimize the average
distance traveled per week.

 Solution:

1 storage bay is 20x20=400 ft2

 Product ranking: 6 > 3 > 1 > 4 > 2 > 5
m
f k   pi d ik
i 1

Dock 1 …50%
Dock 2 …50%

Cell 1: f1  (0.5 * 2 * 20)  (0.5 * 9 * 20)  110

Question 10:

Consider the layout of 5 equal-sized departments. The material flow matrix is given in the figure
below. Develop the final adjacency graph using the graph-based procedure.

 Solution:

C
Question 11:

A Facility has 4 departments of the same size as shown below. A layout rearrangement is being
considered in order to minimize the total cost. The weekly flow of material is represented by the
Flow-Between Chart below. Use a pairwise exchange method to determine the optimal solution.

A B C D 30’

30’
 Flow-Between Chart:

Department A B C D
A - 200 3300 700
B - 200 2800
C - 1200
D -

Solution:

Potential arrangements:
A B C D: 30(200 + 200 + 1200) + 60(3300 + 2800) + 90(700) = 477,000
B A C D: 30(200 + 3300 + 1200) + 60(200 + 700) + 90(2800) = 477,000
C B A D: 30(200 + 200 + 700) + 60(3300 + 2800) + 90(1200) = 507,000
D B C A: 30(2800 + 200 + 3300) + 60(1200 + 200) + 90(700) = 336,000
Switch A and D:

B D C A: 30(2800 + 1200 + 3300) + 60(200 + 700) + 90(200) = 291,000

C B D A: 30(200 + 2800 + 700) + 60(1200 + 200) + 90(3300) = 492,000
A B C D: 30(200 + 200 + 1200) + 60(3300 + 2800) + 90(700) = 477,000
Switch B and D:

C D B A: 30(1200 + 2800 + 200) + 60(200 + 700) + 90(3300) = 477,000

A D C B: 30(700 + 2800 + 200) + 60(3300 + 2800) + 90(200) = 495,000
Not improved.

Final Arrangement: B D C A

Question 12:

Five machines located in a manufacturing cell are arranged in a “U” configuration as shown in
the layout below. The material handling system employed is a bidirectional conveyor system.
Determine the best machine given the product routing information and production rates in the
table.
 Solution: