By Ram Naresh Roy

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Warehouse layout: addresses trade-offs between space and material handling. The first three are called the basic layouts. They are differentiated by the types of work flows they entail; the work flow, in turn, is dictated by the nature of the product. Services have work flows, just as manufacturing do. Often the work flow is paper, information, or even the customers. The right layout for an organization will improve productivity, the quality of the product or service, and delivery rates. Because only a few of these layouts can be modeled mathematically, layout and design of physical facilities are still something of an art.

If supply is larger than demand, create and assign a zero transportation cost to it so that excess supply is absorbed. The Heuristic Model To use the transportation (also called distribution) linear-programming format, (i) the demand requirements and supply availabilities are formulated in a rectangular matrix. (ii) The transportation costs between the supply and demand points are placed in the upper corner of each cell. (iii) Supply is then allocated to meet demand by placing entries, which express the number of units shipped from a supply source to a demand destination, into the cells.

A set of closeness ratings for ARD Letter Closeness A Absolute necessary E Especially important I Important O Ordinary closeness O K U Unimportant X Not desirable product flows. 2 shows a set of closeness ratings proposed by Muther [Turner et al]. For any paired combination, an A rating indicates that it is absolutely necessary to locate the two areas adjacent to each other. On the other hand, an X rating shows that keeping two areas adjacent to each other is not Layout Planning 41 desirable. For example, a machining center and the conference room can be straightaway given an X rating to avoid their being placed together.

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