A three-phase heuristic algorithm for fixed-charge capacitated material flow network design with input/output points location

Abstract

In this paper, we consider the material flow network design problem in which locations of input and output points of departments and flow paths are determined concurrently on a given block layout. The objective of the problem is to minimize the sum of transportation cost, flow paths construction cost and penalty cost for non-smooth material flows, i.e., flows with turns. A mixed integer programming model is given for the problem and a three-phase heuristic algorithm is developed to solve the problem. In the suggested algorithm, we generate an initial flow network by determining locations of input/output points and flow paths sequentially in the first and second phases, respectively, and then improve it by changing locations of input/output points and flow paths iteratively in the third phase. To evaluate the performance of the suggested algorithms, a series of computational experiments are performed on well-known problem instances as well as randomly generated test problems. Results of computational experiments show that the suggested algorithm gives good solutions in a short computation time.