Optimization of Cellular Layout under Dynamic Demand Environment by Simulated Annealing

Grouping the machines and parts in a cellular manufacturing system based on similarities is known as the cell formation. This paper proposes a method for design of cell layout for a manufacturing system under dynamic demand environment for automation batch production industry. The proposed method of cell layout has two phases. In the first phase, Rank Order Clustering (ROC) was used to determine the initial cell layout for first period. This Layout was considered as static layout for other periods to calculate material handling cost. The second phase employs the use of an optimization technique (Simulated Annealing algorithm) to solve the proposed model to develop a better solution. For the purpose of study, three cells are taken in which each cell holding four machines. The demand for each period doesn’t exceed ten components. This layout is applied in all the periods. Thus the entire planning horizon uses a single layout even though the demand is different in different periods of the planning horizon. The algorithm calculates better solution to the batch production industry. Index Terms : Rank Order Clustering, Simulated Annealing algorithm, Dynamic demand environment, Cell Layout, Cellular Manufacturing. Group Technology, Static Layout, Optimum Layout.