Monte Carlo simulation methods for dynamic line layout problems with nonlinear movement costs

Wai Kin Victor Chan and Charles J. Malmborg

European Journal of Industrial Engineering, 2010, vol. 4, issue 1, 40-58

Abstract: Monte Carlo simulation provides a risk management tool for solving line layout problems when material flow requirements change over time and/or are uncertain. This study demonstrates this capability for line layout problems where material handling costs are not directly proportional to the distance travelled, e.g., where individual material moves impose a fixed cost which is amortised over the length of the move. Nonlinear movement costs are modelled using a movement 'discount factor' embedded in a Monte Carlo simulation model that is used to identify solutions performing at high, although not necessarily optimal, levels across a range of operating conditions. The procedure is demonstrated through a series of sample problems. [Received 09 September 2008; Revised 26 November 2008; Accepted 01 December 2008]

Keywords: dynamic line layout; materials handling; volume distance; Monte Carlo simulation; nonlinear movement costs; risk management; discount factors; industrial engineering; material flow. (search for similar items in EconPapers)
Date: 2010
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