A robust optimisation model for generalised cell formation problem considering machine layout and supplier selection

Abstract

Cell formation problem (CFP), as one of the most important decision-making problems in designing a cellular manufacturing system (CMS), includes grouping the machines in cells and the parts as part families. In CFP, machines and their capacity are of the most important issues being considered carefully. Another significant aspect of the problem is material handling costs, namely intercellular and intracellular movement costs with respect to machines layout. On the other hand, supplier selection process has acquired importance recently; this is mainly because the raw material cost has a major share in total cost of final products and most of the factories have to spend substantial amount of their resources on purchasing and transportation. In this article, a new mixed integer linear programming model is proposed for integrating procurement and production planning in supply chain and design of cell formation simultaneously as well as the imprecise nature of some critical parameters such as customer demands and machine capacities. Then, a robust optimisation model is developed to solve the proposed model and finding best solution. The robustness and effectiveness of the proposed model are illustrated in an industrial case inspired form a typical equipment manufacturer.

Keywords:

• cell formation problem
• machine layout
• supplier selection
• robust optimisation