Multi-objective Mixed Integer Programming approach for facility layout design by considering closeness ratings, material handling, and re-layout cost

Facility layout becomes one of production system factor that should be managed well, as it is designated for the location of production. In managing the layout, designing the layout by considering the optimal layout condition that supports the work condition is essential. One of the method for facility layout optimization is Mixed Integer Programming (MIP). In this study, the MIP is solved using Lingo 9.0 software and considering quantitative and qualitative objectives to be achieved simultaneously: minimizing material handling cost, maximizing closeness rating, and minimizing re-layout cost. The research took place in Rekayasa Wangdi as a make to order company, focusing on the making of concrete brick dough stirring machine with 10 departments involved. The result shows an improvement in the new layout for 333,72 points of objective value compared with the initial layout. As the conclusion, the proposed MIP is proven to be used to model facility layout problem under multi objective consideration for a more realistic look.