A robust optimization approach for unequal-area dynamic facility layout with demand uncertainty

Abstract

Owing to the dramatic increase of the individualized demand, mass customization has become a mainstream production mode with product demand uncertainty, which leads to logistics uncertainties at each production stage. To handle these different types of uncertainties, a hybrid robust optimization model for unequal-area dynamic facility layout problem (UA-DFLP) considering the location of pick-up and drop-off points (P/D points) is proposed. Furthermore, an improved particle swarm optimization (PSO) algorithm is developed to solve the proposed model. A real case acquired from an assembly line demonstrates the effectiveness of the approach.