The Single Period Stochastic Plant Layout Problem

In this paper we present an optimal solution procedure for the single period stochastic plant layout problem. The procedure only requires solving a "deterministic" from-to flow matrix. This "deterministic" matrix is a weighted-average of all from-to flow matrices. Since it may be difficult to estimate the probabilities of occurrence of the various states of nature, we developed a simulation model to test the robustness of our approach. For over 26,000 problems examined, the average error of using our approach was very small, only about one-sixth of one percent. Handled by the Department of Facilities Design/Material Handling.