Robust Optimization Approach for Design for a Dynamic Cell Formation Considering Labor Utilization: Bi-objective Mathematical Model

In this paper, robust optimization of a bi-objective mathematical model in a dynamic cell formation problem considering labor utilization with uncertain data is carried out. The robust approach is used to reduce the effects of fluctuations of the uncertain parameters with regards to all the possible future scenarios. In this research, cost parameters of the cell formation and demand fluctuations are subject to uncertainty and a mixed-integer programming (MIP) model is developed to formulate the related robust dynamic cell formation problem. Then the problem is transformed into a bi-objective linear one. The first objective function seeks to minimize relevant costs of the problem including machine procurement and relocation costs, machine variable cost, inter-cell movement and intra-cell movement costs, overtime cost and labor shifting cost between cells, machine maintenance cost, inventory, holding part cost. The second objective function seeks to minimize total man-hour deviations between cells or indeed labor utilization of the modeled.