Abstract
A model for selecting materials handling equipment and assigning it to departmental moves is presented. The problem is formulated as an integer program with the objective of minimizing the total operating and investment costs of the selected equipment. The constraints specify that each move is restricted to only one equipment type and the available operating time of each equipment type cannot be exceeded. The problem is solved using a construction heuristic algorithm that exploits, conceptually, some similarities to both the knapsack and the loading problems. The algorithm is computationally attractive and lends to achieve other goals, such as maximizing equipment utilization and minimizing the variations in equipment types, as well as the primary goal of cost minimization.