Bi-objective facility expansion and relayout considering monuments

In this paper, the unequal area facility expansion and relayout problem is studied. The facility relayout problem is important since both manufacturing and service entities must modify their layouts over time when their operational characteristics change. A bi-objective approach is proposed to solve the relayout problem for cases of both a fixed facility area and an expanded facility area. Material handling costs and relayout costs are minimized using a tabu search meta-heuristic optimizer. This heuristic randomly alternates the objective function between the two objectives of the problem in each step and, by doing so, eliminates the difficulty of weighting and scaling the two objectives. The approach is flexible in handling various aspects of the problem such as stationary portions of departments (i.e., monuments), addition of new departments, and changes in existing department and facility areas. Computational experiments show that the bi-objective tabu search approach is effective and tractable. The use of the Pareto front of designs is demonstrated by showing a few approaches to analyzing the trade-offs between initial costs (relayout cost) and ongoing expenses (material handling costs).