These costs include material handling, machine relocation, setup, inventory carrying, in-house production and subcontracting needs.
These costs are associated with material handling, machine relocation, setup, inventory carrying, in-house production and subcontracting needs.
However, when systems reconfiguration and production planning are considered concurrently, the actual problem involves other costs associated with machine relocation, setup, inventory holding, in-house production and subcontracting needs (See Tables 1 and 2 for a comparison between this paper and recently published articles on distributed layout).
} end{aligned} (20)The objective function in Eq. (1) consists of six cost terms: machine relocation, material handling, inventory holding, machine setup, in-house production, and subcontracting needs in that order.
The objective is to minimize the total costs of intra-cell, inter-cell, and inter-floor material handling, purchasing machines, machine processing, machine overhead, and machine relocation.
The objective of the integrated model is to minimize the total costs of intra and inter-cell material handling, machine relocation, purchasing new machines, machine overhead and machine processing.
Machine relocation costs.
In the mathematical model development, summation of costs for above two relocations is referred as total machine relocation cost.
Since there is no machine relocation between periods, the only cost which is incurred for relocation is related to installing new purchased machines in the first period.
Equation (1.2) calculates the machine relocation cost between cells, whereas machine relocation cost between cells and setup area is calculated by Eq. (1.3).
