Pg. 549 Problem 5
To come up with a suitable layout, we first consider the locations of departments that are associated with the strongest ratings (A’s and X). For example, the department for cooking burgers and the one for fries are put on the opposite sides of the area. Drink dispensers are close to the drive-up window and not far from the counter. The desirability of closeness for other departments is accommodated next. After the layout is completed, a review is needed to make sure the strong ratings are observed. If not, a better alternative should be sought after by trial and error. A suggested layout is as follows:
The accompanying table lists the sequence of machine types required for nine part types produced by a manufacturing facility:
Set up a part-machine processing indicator matrix for the data in the table.
Determine machine groups and part families using
the Row and Column Masking clustering algorithm presented in class;
The product families identified are {1, 2, 5, 8} and {3, 4, 6, 7, 9}.
the Similarity Coefficient approach, with the clustering threshold set to 0.5.
The machine groups identified are {M2, M3, M5} and {M1, M4, M6}.
Let yi be the units of technology i to be leased, xij be the capacity of technology i dedicated to producing the product family j (in machine-years). Note that xij can be fractional.
MP formulation:
Objective
min 125000 y1 + 75000 y2
Subject to  
50000 x11 + 0 x21 ≥ 100000 …….. (1)
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