This paper analyzes the machine layout problem in flexible manufacturing systems (FMS's). We show that the quadratic assignment formulation cannot be used to model the machine layout problem. Four basic types of machine layouts that are frequently encountered in FMS's are presented. A measure to determine the relationship between machines is introduced. Since automated guided vehicles are commonly used to transport material between machines, their motion characteristic is discussed. Two new construction algorithms are presented to solve the machine layout problem in FMS's. They generate solutions with acceptable quality in low computational time. The triangle assignment algorithm (TAA) is compared to existing methods for 8 test problems and is found to give solutions of better quality than any other construction method published. When compared to existing methods, the computation time performance is attractive.

The two primary functions of a warehouse include (1) temporary storage and protection of goods and (2) providing value added services such as fulfilment of individual customer orders, packaging of goods, after sales services, repairs, testing, inspection and assembly. To perform the above functions, the warehouse is divided into several functional areas such as reserve storage area, forward (order collation) area and cross-docking. The paper presents a mathematical model and a heuristic algorithm that jointly determine product allocation to the functional areas in the warehouse as well as the size of each area using data readily available to a warehouse manager.