Mathematical models for selection of optimal place and size of connections considering the time-value of money
In this study, mathematical models to select the optimal place and size of connections are studied considering the time-value of money. A connection is defined as a part that links different sets of departments through which some interdepartmental material flows must go [S. Huang, R. Batta, R. Nagi, Variable capacity sizing and selection of connections in a facility layout, IIE Transactions 35 (2003) 49-59]. The goal of this paper is to select the location and capacity of the connections so as to minimize the sum of material movement, connection installation and connection maintenance costs minus the salvage value considering the time-value of money. Mixed integer nonlinear programming models are developed for discrete and continuous capacity options. The mixed integer nonlinear programming models of the continuous cases are reduced to mixed integer linear programming models, using proved properties of these problems. For the discrete capacity cases, a computational example and sensitivity analysis of the solutions with respect to possible future changes in the values of parameters are developed and presented.
Year of publication: |
2010
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Authors: | Rastpour, Amir ; Esfahani, M.S. |
Published in: |
European Journal of Operational Research. - Elsevier, ISSN 0377-2217. - Vol. 200.2010, 3, p. 764-773
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Publisher: |
Elsevier |
Keywords: | Logistics Investment analysis Economics Nonlinear programming Linear programming |
Saved in:
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