Material Handling Cost Research Articles

Exact formulation and two-stage optimisation method for corridor allocation problem consider separated man-vehicle logistics passage in manufacturing workshops

Passage is an essential logistics carrying structure in the layout, rational planning of its location can effectively improve production efficiency and safety of the workshop. In this paper, we introduce the concept of man-vehicle diversion and propose a novel corridor allocation problem with a separated man-vehicle logistics passage (CAP_SMVP). CAP_SMVP needs to sequence the facilities and determine the final exact location of the changeable sidewalk. Subsequently, we construct two mixed-integer linear programming models to minimise the material handling costs (MHC). The models for small-scale instances are solved precisely using GUROBI. We choose a two-stage method (combining meta-heuristic algorithm and linear programming, CMLP) to address large-scale problems. The correctness of the proposed model and CMLP is confirmed in solving the benchmark instances. Then, the calculation results of multiple algorithms for solving the initial CAP demonstrate the universality of the proposed algorithm. Finally, a real-world case is conducted, and managerial insights are provided. The comparison results show the proposed layout structure’s advantages and highlight the efficiency of the two-stage method.

A Modified Simulated Annealing and Enhanced Harmony Search Algorithms for the Continuous Facility Layout Problem (CFLP)

This paper focuses on solving the Continuous Facility Layout Problem (CFLP), which aims to minimize material handling costs by strategically placing facilities in a known or unknown area. The objective is to find optimal or near-optimal facility arrangements while adhering to non-overlapping and spatial constraints, thus enhancing the efficiency of production systems. The study addresses various layout scenarios, including single-row facility layout (with and without clearance), continuous layout, and unequal-area facility layout problems. To achieve this, the authors propose a mixed-integer nonlinear programming (MINLP) model tailored for continuous layouts. Two meta-heuristic algorithms are developed to optimize this model: a hybrid Simulated Annealing-Genetic Algorithm (SA-GA), which leverages genetic crossover operations, and an Enhanced Harmony Search Algorithm (EHSA), featuring dynamic parameters and a novel improvisation technique. The proposed methods provide flexible and efficient solutions for both small and large-scale layout problems, offering decision-makers practical tools for real-world applications.

A Novel Approach for Material Handling-Driven Facility Layout

Material handling is a widely used process in manufacturing and is generally considered a non-value-added process. The Dynamic Facility Layout Problem (DFLP) considered in this paper minimizes the total material handling and re-arrangement cost. In this study, an integrated DFLP model with unequal facility areas, assignment of material handling devices (MHD), and flexible bay structure (FBS) is considered, and it is aimed to propose fast solution approaches. Two different solution methods are proposed for the problem, which are the genetic algorithm and the simulated annealing algorithm, respectively. In both methods, a non-linear mathematical model solution was used to calculate the fitness values. Thus, the solutions in the feasible solution space are utilized. The proposed solution approaches were applied to solve four problems published in the literature. The computational experiments have validated the effectiveness of the algorithms and the quality of solutions produced.

Redesign The Layout of Production Facilities at a Garment Company Using the BLOCPLAN Method to Optimize Material Handling

Facility layout design is crucial in production layout setups. The composition of facilities that corresponds to the flow of materials between departments will help to ensure the production system's continuity. PT. KMC is a garment company in West Jakarta that manufactures shirts, dresses, and t-shirt bloats. The company's current layout facilities have not run optimally. This is because inefficient movement distances result in wasted material handling costs, and crossing production flows between departments cause production processes to be disturbed. The objective of this project is to rethink facility layouts using the BLOCPLAN approach in order to optimize material handling. The BLOCPLAN approach may examine layout performance and generate new layout ideas for efficient material handling. The discussion is limited because this research was only conducted on one company. Based on the results of the layout redesign using the BLOCPLAN approach, various improvements were obtained, including a 37.12% increase in material handling cost efficiency. The proposed layout with the BLOCPLAN method is able to provide a reduction in material transfer distance of 22.6 meters and a material handling cost of Rp 155,346 when compared to the initial layout, which had a total overall displacement distance of 35.8 meters and an initial layout material handling cost of Rp 247,059, making it much cheaper.

DESIGN OF STORAGE LAYOUT FOR PROTECTOR MATERIAL (FAST MOVING) WITH CLASS BASED STORAGE METHOD AT RAW MATERIAL WAREHOUSE JEPARA PT DSV SOLUTIONS INDONESIA (SEMARANG BRANCH)

PT DSV Solutions Indonesia Semarang Branch is a 3PL company engaged in warehousing logistics. The current condition is that the protector material storage still uses a randomized storage method and the GR (Good Receiving) method which rearranges the boxes into pallets. The current layout causes a fairly high displacement distance and has an impact on high material handling costs and the size of the blocks on the shelves that make the GR method long. The purpose of this study is to design a storage layout for protector (fast moving) materials using the class-based storage method to determine changes in displacement distance, material handling costs, and work efficiency and performing the GR (Good Receiving) process. Researchers used descriptive qualitative research methods with observation, interviews, and documentation. The results showed the total distance of the initial displacement of the protector material was 16,172,250 m and the Material Handling Cost was Rp 109,971,300 and the GR process did not require rearrangement into pallets. The output of this research is that it can reduce the total distance of moving the protector material and streamline the distance of movement by 56% and streamline the Material Handling Cost by 56%. In the changed GR (Good receiving) method, it can raise the beam on the level 3 shelf, by 1.5m. The material protector storage layout can be said to be efficient using the class-based storage method when compared to the initial storage layout.

PERANCANGAN TATA LETAK RELOKASI LANTAI PRODUKSI DENGAN METODE SYSTEMATIC LAYOUT PLANNING, BLOCPLAN, DAN FLAP

In the development of the industrial revolution 4.0, in carrying out production at small, medium, and large levels, there has been a fairly large and significant increase. Factors that influence the goal of successful production are not only about investment, capital, suppliers, machines, skills, and distributors but also one that must be observed is the layout planning and placement of factory facilities. PT. Eworx Indonesia is a company engaged in the processing industry, especially manufacturing in the metal processing sector. PT. Eworx Indonesia intends to relocate the production floor in order to increase production productivity. In this study, the proposed layout design on the new production floor was carried out using the SLP, Blocplan, and FLAP methods. The design is done by collecting direct observation data and interviews with the operator on duty. It was found that the initial layout had problems with operator movement that was not optimal and the placement of several machines and facilities that did not pay attention to material flow resulting in a slowdown in production time. Therefore, in order to get the best layout, a comparison is made on the results of the three alternative layouts with the smallest displacement distance comparison so that the production process will run more optimally. The best proposed layout is the systematic layout planning (SLP) method with the smallest material displacement distance of 147.4 meters and material handling costs Rp. 223,958 per day. Flexsim simulations show this layout can increase production output by 15%-34%.

Sequential use of blocplan, solver, and particle swarm optimization (PSO) to optimize the double row facility layout

Facility layout optimization is used to increase company productivity by minimizing waste on transportation, movement, and waiting time. It was mentioned in several previous studies that optimal facility layout can reduce production costs by up to 40%. Because of this importance, many previous researchers have carried out research in the field of Facility Layout. The differences between each Facility Layout research are in the characteristics and criteria being analyzed and the optimization method used. The several approaches used to optimize the layout are constructed algorithm, exact algorithm, and metaheuristic. These three methods have their respective purposes and to the best of our knowledge have not been used sequentially. So, this study aims to find the best layout for the double-row facility problem with aisle width consideration using three sequential methods. There are BLOCPLAN for the constructed algorithm, solver for the exact algorithm, and Particle Swarm Optimization (PSO) for the metaheuristic. The result shows that the use of BLOCPLAN gives a better result of Total Material Handling Cost (TMHC) in PSO. For more machines, PSO has better results than Gurobi Optimization.

Perancangan Tata Letak Gudang Penyimpanan Material pada Perusahaan Air Minum dengan Menggunakan Metode Class Based Storage

PDAM Tirta Musi Palembang is a regional company engaged in the supply of clean water, especially in the Palembang area. The company still has not implemented the warehousing method properly. This is indicated by the presence of material with the highest frequency of picking placed far from the entrance and exit of the warehouse, the occurrence of long queues when picking up material for a unit in the warehouse, the aisle is used as the placement of goods, the labeling of materials is uneven, and placing goods in the area empty without regard to entry and exit. For this reason, it is necessary to improve the layout of the warehouse using the ABC Class-Based Storage method. The use of this method is based on the ease of managing the movement of goods in/out based on the frequency of movement of goods. Based on the results of data processing carried out, the grouping of materials using ABC analysis was obtained, namely Class A (HDPE Pipe, Sealtape, Elbow PE, Ferulle, Knee GS, and PVC Glue), Class B (Foucet Elbow and Knee PVC) and Class C (PVC Pipe, Clam Saddle, Box Meter, GS Pipe, and PVC Headlight). The Material Handling costs incurred in the proposed layout amounted to IDR 45,910687 (61.64% savings) which reduced the total distance by 66.30%. Keywords: ABC Analysis, Class-Based Storage, Material Handling Costs, Warehouse Layout

SLP Method Boosts Production Efficiency by 16% in Indonesia

The study on improving the facility layout at CV. Surya Mega Yokasa demonstrated that the Systematic Layout Planning (SLP) method significantly enhances the efficiency of the production process, with a total reduction in material displacement distance by 13.45 meters and an efficiency increase of 16%. These findings imply that careful consideration of workflow and qualitative factors in layout planning can markedly optimize production flow and reduce congestion. However, the study did not factor in the Material Handling Costs (MHC), suggesting that future research should integrate MHC analysis to provide a more comprehensive evaluation of layout effectiveness and further optimize production efficiency. Highlight: Efficiency Boost: SLP reduced displacement by 13.45m, increasing efficiency by 16%. Improved Workflow: SLP method improved production flow, reducing congestion. Future Focus: Include Material Handling Costs for better layout evaluation. Keywoard: Systematic Layout Planning, Blocplan, Production Efficiency, Material Flow, Facility Layout

Perancangan Tata Letak Proses Produksi Kursi Furnitur Menggunakan Metode Activity Relationship Chart (ARC) di PT. Rama Teknik

Rama Teknik Company, a manufacturing company in Indonesia founded in 2015, offers innovative business solutions based on research and development. The production process faces layout irregularities which result in disruptions in the production flow. The impact is that the material handling frequency becomes longer and causes material handling costs to become high. Apart from that, the company also experienced failure to achieve production targets. Decision making regarding layout and location is very important in determining a company's long-term operational efficiency. The aim of the research is to redesign the optimal factory layout. To improve the layout of workstations, the research department uses the Activity Relationship Chart (ARC) method which is implemented through FlexSim simulation software. The initial and proposed layouts were simulated using FlexSim software. The stages start from designing the initial layout, then looking for problem gaps. After that, redesign the new layout. The results of the initial layout show 309 finished products, representing a 100% output rate for Queue4 semi-finished goods, 5 warehouses, and 0 finished products in PL. After retesting with the proposed layout, the initial raw materials were 334.49, Queue1 had 285 items, and there was a 38% increase in finished products, a total of 427 seats.

Hybridization in meta-heuristic techniques for green layout design in the tyre manufacturing industry: An optimal analysis

To stop or lessen factory pollution, many academics in the field of study have produced a vast array of strategies to achieve optimization goals. But, it is unable to follow a uniform solution for all production facilities. In this research work, green layout design (GLD) is proposed to minimize total material handling cost (TMHC) and CO2 emissions. The green facility layout refers to the facility layout with minimum CO2 emissions and to eliminate unnecessary energy dissipation from material handling equipments & production machineries, as well as plant re-layout in-term on material handling cost. In this study context, a Lagrangian relaxation model has been used at the allocation level. It computes a suboptimal solution to the dual problem in order to obtain a feasible solution. This enhanced algorithm method iteratively tries to minimize the gap between the dual and feasible solutions on minimal of TMHC and CO2 emission rate. It has been experimentally simulated using the MATLAB (Matrix Laboratory) application and upgraded adaptive salp swarm optimization (ASSO), dragon fly optimization (DFO) and Hybrid (combination) of ASSO-DFO evolutionary optimization techniques. The primary focus of this implementation is to control material handling between departments or cells, production flow between departments, energy consumption (electrical and gas consumption for production), and manpower utilization within and across departments. This research has chosen an existing and acceptable designs from targeted tyre manufacturing company in South India. The hybrid ASSO-DFO implementation TMHC differs from ABC by 60%, DFO by 65%, 58% with simulated annealing (SA), and ASSO by 48%. Emission rate decreased by 26% ABC, 21% DFO, and 24% SA & 18% with ASSO. An average of 50% decrease in TMHC and 25% reduction of CO2 emission rate in GLD have been achieved.

Research on Workshop Layout Optimization Based on SLP Method

With the rapid development of the market economy and the increasing personalized needs of customers, the production mode of the production workshop is gradually shifting towards small batch and multi batch production mode, which has a significant impact on the production efficiency, logistics costs, and other aspects of the production workshop, posing huge challenges to the layout of production workshop facilities. A reasonable workshop layout can not only reduce the distance and cost of material handling, but also save product production time and shorten the production cycle. This article takes DY Company's machining workshop as the research object, and through investigation, it is found that there are problems such as logistics distribution routes crossing and overlapping in the workshop. In response to the above issues, data was collected from the workshop and analyzed using the SLP method, ultimately obtaining the optimal solution for optimizing the layout of the machining workshop, achieving a dual improvement in the production capacity and efficiency of the machining workshop.

Ranking of Technologies for Intralogistic Bulk Material Handling Processes Using Fuzzy Step-Wise Weight Assessment Ratio Analysis and Axial-Distance-Based Aggregated Measurement Methods

The logistics network is considered the provider of logistics activities in supply chains. The fluctuating requirements of customers and the logistics network’s complex structure are only a few of the factors that cause challenges to its management. Industrial facilities are particularly vulnerable to challenges because material handling operations dominate in addition to manufacturing activities. Disruptions at industrial plants are disseminated through the logistics network, affecting all supply chain participants. As a result, reducing material handling time and costs to decrease material losses, pollution, and productivity is vital to their business. Due to their distinctive properties and significant share in finished goods, bulk materials are particularly vulnerable to issues during manufacturing. Accordingly, this study aims to rank and select technologies for handling bulk materials in an industrial plant where the production of construction materials is performed. This paper proposes four alternative solutions for the observed case study, and nine criteria were selected for the evaluation. A new hybrid multi-criteria decision-making model is proposed. The model combines Fuzzy Step-Wise Weight Assessment Ratio Analysis (SWARA), used to determine the weight of criteria, and the Axial-Distance-Based Aggregated Measurement (ADAM) method, used to rank alternative solutions. The model results indicate that the pneumatic conveyor is the best ranked alternative that significantly increases productivity, reduces losses, and improves working conditions. The key contributions of this study are its analysis of the efficiency of the technologies proposed for bulk material handling and the development and implementation of a model framework for the ranking of these technologies.

Analysis Planning Relay Layout with Computerized Relative Allocation of Facilities Technique Approach

PT XYZ is one of the manufacturing industries engaged in the production of palm oil processing. The products produced are cooking oil and margarine. So far, the implementation of activities has been hampered by the current layout conditions having a less efficient material handling path length, in addition, the distance between facilities is too far ± 150m which results in repeated transportation, this results in PT XYZ's material transfer activities being less effective. Therefore, this study aims to redesign the layout of production facilities in order to minimize material handling costs and raw material movement distances to be more effective. From these problems, the method used is the CRAFT (Computerized Relative Allocation of Facilities Techniques) method, this method can be done with the help of FTC (From to Chart), ARC (Activity Relation Chart) and ARD (Activity Relationship Diagram) calculations. The results of this study showed that the CRAFT algorithm succeeded in saving total material handling costs of Rp. 469,352.04 per day and reducing the total distance of movement by 67.15 meters. The reduction in material handling costs achieved was Rp 2,114,734.77 or around 81.84%, while the reduction in material handling distance reached 306.85 meters or around 82.05%.

Cell formation and layout design using genetic algorithm and TOPSIS: A case study of Hydraulic Industries State Company.

Cell formation (CF) and machine cell layout are two critical issues in the design of a cellular manufacturing system (CMS). The complexity of the problem has an exponential impact on the time required to compute a solution, making it an NP-hard (complex and non-deterministic polynomial-time hard) problem. Therefore, it has been widely solved using effective meta-heuristics. The paper introduces a novel meta-heuristic strategy that utilizes the Genetic Algorithm (GA) and the Technique of Order Preference Similarity to the Ideal Solution (TOPSIS) to identify the most favorable solution for both flexible CF and machine layout within each cell. GA is employed to identify machine cells and part families based on Grouping Efficiency (GE) as a fitness function. In contrast to previous research, which considered grouping efficiency with a weight factor (q = 0.5), this study utilizes various weight factor values (0.1, 0.3, 0.7, 0.5, and 0.9). The proposed solution suggests using the TOPSIS technique to determine the most suitable value for the weighting factor. This factor is critical in enabling CMS to design the necessary flexibility to control the cell size. The proposed approach aims to arrange machines to enhance GE, System Utilization (SU), and System Flexibility (SF) while minimizing the cost of material handling between machines as well as inter- and intracellular movements (TC). The results of the proposed approach presented here show either better or comparable performance to the benchmark instances collected from existing literature.

Solving Unequal Area Facility Layout Problems with Differential Evolution and Particle Swarm Optimization

The unequal area facility layout problem (UAFLP) is a problem in industrial engineering that aims to minimize material handling costs between a group of unequal-shaped facilities. In this study, Differential Evolution (DE) with continuous variables and Particle Swarm Optimization (PSO) are employed to solve the UAFLP. This study also compares the performance of the DE method (never used to solve UAFLP) and the PSO method (frequently used to solve facility layout problems). The experimental results demonstrate that PSO is effective in solving small-sized datasets, while DE works well in solving datasets with larger areas.

On-site workshop investment problem: A novel mathematical approach and solution procedure

In real-world construction sites, On-Site Workshops (OSW) are installed to accelerate construction activities and facilitate the material handling process. These temporary OSWs are cost-effective, leading to decreasing the material handling cost and project makespan, which indicates their important role as a part of a construction project. However, considering the OSW, which has not been addressed in the project scheduling problems, requires the construction site to have a space capacity constraint while considering the workshop size, availability level, and other project-related constraints. In the present work, by considering the OSWs, a real construction project scheduling problem is studied as a Multi-Mode On-Site Workshop Investment Problem with Tardiness (MOSWIPT) while finding the installation/dismantling time of the OSWs. Two new (linear) mathematical programming models are proposed for MOSWIPT. Next, due to the NP-hardness of the problem, an enhanced Genetic Algorithm (GA)-based metaheuristic with efficient problem-specific improvement rules as local search and effective crossover and mutation operators is proposed. Computational experiments show that the proposed method has solved most of the instances of the addressed problem to optimality and outperformed the existing metaheuristics, e.g., Simulated Annealing (SA) and Particle Swarm Optimization (PSO). Finally, conclusions and suggestions for future studies are stated.

Optimization of Facility Layout Problems Using Genetic Algorithm

The facility layout problem (FLP) is one of the most important classic industrial engineering and production management problems that have attracted the attention of many researchers over the last few decades. Poor production facility layout planning can result in additional operational costs; one of them is the cost of material handling. Although crucial, FLP is a challenging issue to resolve. A unique method is needed depending on the constraint, case study, and layout type. This research was conducted in order to improve the existing layout of PT. XYZ to minimize material handling costs. The layout type in this case is the Open-field layout problem (OFLP). A genetic algorithm is proposed to optimize the layout. The result is 18.1% material handling costs can be reduced.

Short-term planning of open pit mines with Semi-Mobile IPCC: a shovel allocation model

ABSTRACT In-pit crushing and conveying (IPCC) is considered a suitable alternative to truck haulage in open pit mines because it offers a lower operating cost than a truck-shovel system. It also reduces truck haulage distance and truck requirements. One of the IPCC variations is the semi-mobile system, which is relocated every two to five years. The short-term plan needs to be updated accordingly, based on the crusher’s optimal location and relocation time. To the best of our knowledge, short-term planning with IPCC is an area of research that has not been explored extensively yet and hardly any model can generate short-term schedules considering an IPCC in place. This research work proposes a mixed integer programming model to generate short-term production plans and near-optimal shovel allocation to mining faces, within a time horizon of 12 months. The objective of the model is to minimise the cost of material handling and maximise revenue, with respect to plant requirement, maximum allowable tonnage variation and IPCC location constraints, and the production and NPV targets set by the strategic plan. An iron ore mine case including a semi-mobile IPCC (SMIPCC) system with one relocation is used as the case study to verify the proposed model. The comparison of results between scenarios with and without IPCC justifies the use of IPCC in the iron ore mine from a short to medium-term perspective. The project can be considered a pioneering work in the arena of short-term mine planning with the IPCC.

A Mixed-Integer Programming Formulation for a Simplified Model of the Double Row Layout Problem

The double row layout problem (DRLP) is to assign facilities on two rows in parallel so that the total cost of material handling among facilities is minimized. Since it is vital to save cost and enhance productivity, the DRLP plays an important role in many application fields. Nevertheless, it is very hard to handle the DRLP because of its complex model. In this paper, we consider a new simplified model for the DRLP (SM-DRLP) and provide a mixed integer programming (MIP) formulation for it. The continuous decision variables of the DRLP are divided into two parts: start points of double rows and adjustable clearances between adjacent facilities. The former one is considered in the new simplified model for the DRLP with the purpose of maintaining solution quality, while the latter one is not taken into account with the purpose of reducing computational time. To evaluate its performance, our SM-DRLP is compared with the model of a general DRLP and the model of another simplified DRLP. The experimental results show the efficiency of our proposed model.