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

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  • Wai Kin Victor Chan
  • Charles J. Malmborg

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]

Suggested Citation

  • Wai Kin Victor Chan & Charles J. Malmborg, 2010. "Monte Carlo simulation methods for dynamic line layout problems with nonlinear movement costs," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 4(1), pages 40-58.
    • Handle: RePEc:ids:eujine:v:4:y:2010:i:1:p:40-58
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    Cited by:

    1. Keller, Birgit & Buscher, Udo, 2015. "Single row layout models," European Journal of Operational Research, Elsevier, vol. 245(3), pages 629-644.

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