A New Optimization via Simulation Approach for Dynamic Facility Layout Problem with Budget Constraints

A new efficient heuristic algorithm has been developed for the dynamic facility layout problem with budget constraint (DFLPB) using optimization via simulation technique. The heuristic integrates integer programming and discrete event simulation to address DFLPB. In the proposed algorithm, the nonlinear model of the DFLP has been changed to a pure integer programming (PIP) model. Then, the optimal solution of the PIP model has been used in a simulation model that has been designed in a similar manner as the DFLP for determining the probability of assigning a facility to a location. After a sufficient number of runs, the simulation model obtains near optimum solutions. Finally, to test the performance of the algorithm, several test problems have been taken from the literature and solved. The results show that the proposed algorithm is more efficient in terms of speed and accuracy than other heuristic algorithms presented in previous works.