european journal of operational research · (2000), dearing et al. (2002) and nandikonda et al....

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Production, Manufacturing and Logistics Facility placement with sub-aisle design in an existing layout Min Zhang a , Selçuk Savas b , Rajan Batta c, * , Rakesh Nagi c a Avis Budget Group Inc., 6 Sylvan Way, Parsippany, NJ 07054, USA b Department of Industrial Engineering, IS ßIK University, Istanbul, Turkey c Department of Industrial and Systems Engineering, 438 Bell Hall, University at Buffalo (SUNY), Buffalo, NY 14260, USA article info Article history: Received 22 March 2007 Accepted 21 June 2008 Available online 5 July 2008 Keywords: Facility design Facility placement Sub-aisle configuration abstract In this paper, we consider the integration of facility placement in an existing layout and the configuration of one or two connecting sub-aisles. This is relevant, for example, when placing a new machine/depart- ment on a shop floor with existing machines/departments and an existing aisle structure. Our work is motivated by the work of Savas et al. [Savas, S., Batta, R., Nagi, R., 2002. Finite-size facility placement in the presence of barriers to rectilinear travel. Operations Research 50 (6), 1018–1031], that considered the optimal planar placement of a finite-size facility in the presence of existing facilities. Our work differs from theirs in that we consider material handling to be restricted to the aisle structure. We do not allow the newly placed facility to overlap with existing facilities or with the aisle structure. Facilities are rect- angular and travel is limited to new or existing aisles. We show that there are a finite number of candi- date placements for the new facility. Algorithms are developed to find the optimal placement and the corresponding configurations for the sub-aisles. Complexity of the solution method is analyzed. Also, a numerical example is provided to explore the impact of the number of sub-aisles added. Ó 2008 Elsevier B.V. All rights reserved. 1. Introduction Facility layout and location problems arise in a variety of con- texts (Francis et al., 1992). Facility layout problems consider place- ment of finite-sized facilities, while facility location problems consider placement of infinitesimal-sized facilities, perhaps in the presence of finite-sized barriers to travel or forbidden regions for locating new facilities. In facility layout and location problems, the material handling between facilities is assumed to take place along a shortest feasible rectilinear/Euclidean path. This assump- tion often leads to inaccurate distance measurements in a plant layout application, because material handling clearly has to take place through an aisle structure, i.e. travel has to be restricted to a material handling network. In network location problems, travel between facilities is assumed to occur through an underlying net- work, additionally both the existing facilities on the network and the new facilities to be located are assumed to be of infinitesimal size. The latter assumption is also not valid for plant layout prob- lems. Recognizing the relevance of facility size and the existence of aisles for material handling between facilities in a plant, we ad- dress the layout addition problem of placing a rectangular new facility in a plane in the presence of other rectangular existing facilities and an aisle structure. We consider the cases of placing the new facility directly onto the existing aisles and adding one or two sub-aisles to connect the new facility to the existing aisles. The rest of the paper is organized as follows: Section 2 provides a literature review. In Section 3, we formally introduce and define the problem. In Section 4, we describe a grid construction proce- dure. In Section 5, we detail our approach to the problem, consid- ering both the situation of adding a new facility directly onto the existing aisle structure, and the simultaneous consideration of placement of a new facility and configuration of sub-aisles. The complexity of our solution algorithm is analyzed in Section 6. An example is presented in Section 7. Finally, a summary and conclu- sions of our work are presented in Section 8. 2. Literature review Restricted location problems are the closely related research areas to our work where restrictions are imposed on locating new facilities. The restricted area falls into three classes: barriers (which prohibit location and travel), forbidden regions (which pro- hibit location but permit travel at no extra cost), and generalized congested regions, GCR (which prohibit location but permit travel at a penalty). For restricted location problems, readers are referred to Katz and Cooper (1981), Larson and Sadiq (1983), Batta et al. (1989), Aneja and Parlar (1994), Butt and Cavalier (1996), Klamroth (2000), Dearing et al. (2002) and Nandikonda et al. (2003), among others. 0377-2217/$ - see front matter Ó 2008 Elsevier B.V. All rights reserved. doi:10.1016/j.ejor.2008.06.029 * Corresponding author. Tel.: +1 1 7166452357; fax: +1 1 7166453302. E-mail address: [email protected] (R. Batta). European Journal of Operational Research 197 (2009) 154–165 Contents lists available at ScienceDirect European Journal of Operational Research journal homepage: www.elsevier.com/locate/ejor

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Page 1: European Journal of Operational Research · (2000), Dearing et al. (2002) and Nandikonda et al. (2003), among ... European Journal of Operational Research journal homepage:

European Journal of Operational Research 197 (2009) 154–165

Contents lists available at ScienceDirect

European Journal of Operational Research

journal homepage: www.elsevier .com/locate /e jor

Production, Manufacturing and Logistics

Facility placement with sub-aisle design in an existing layout

Min Zhang a, Selçuk Savas b, Rajan Batta c,*, Rakesh Nagi c

a Avis Budget Group Inc., 6 Sylvan Way, Parsippany, NJ 07054, USAb Department of Industrial Engineering, IS�IK University, Istanbul, Turkeyc Department of Industrial and Systems Engineering, 438 Bell Hall, University at Buffalo (SUNY), Buffalo, NY 14260, USA

a r t i c l e i n f o a b s t r a c t

Article history:Received 22 March 2007Accepted 21 June 2008Available online 5 July 2008

Keywords:Facility designFacility placementSub-aisle configuration

0377-2217/$ - see front matter � 2008 Elsevier B.V. Adoi:10.1016/j.ejor.2008.06.029

* Corresponding author. Tel.: +1 1 7166452357; faxE-mail address: [email protected] (R. Batta).

In this paper, we consider the integration of facility placement in an existing layout and the configurationof one or two connecting sub-aisles. This is relevant, for example, when placing a new machine/depart-ment on a shop floor with existing machines/departments and an existing aisle structure. Our work ismotivated by the work of Savas et al. [Savas, S., Batta, R., Nagi, R., 2002. Finite-size facility placementin the presence of barriers to rectilinear travel. Operations Research 50 (6), 1018–1031], that consideredthe optimal planar placement of a finite-size facility in the presence of existing facilities. Our work differsfrom theirs in that we consider material handling to be restricted to the aisle structure. We do not allowthe newly placed facility to overlap with existing facilities or with the aisle structure. Facilities are rect-angular and travel is limited to new or existing aisles. We show that there are a finite number of candi-date placements for the new facility. Algorithms are developed to find the optimal placement and thecorresponding configurations for the sub-aisles. Complexity of the solution method is analyzed. Also, anumerical example is provided to explore the impact of the number of sub-aisles added.

� 2008 Elsevier B.V. All rights reserved.

1. Introduction

Facility layout and location problems arise in a variety of con-texts (Francis et al., 1992). Facility layout problems consider place-ment of finite-sized facilities, while facility location problemsconsider placement of infinitesimal-sized facilities, perhaps inthe presence of finite-sized barriers to travel or forbidden regionsfor locating new facilities. In facility layout and location problems,the material handling between facilities is assumed to take placealong a shortest feasible rectilinear/Euclidean path. This assump-tion often leads to inaccurate distance measurements in a plantlayout application, because material handling clearly has to takeplace through an aisle structure, i.e. travel has to be restricted toa material handling network. In network location problems, travelbetween facilities is assumed to occur through an underlying net-work, additionally both the existing facilities on the network andthe new facilities to be located are assumed to be of infinitesimalsize. The latter assumption is also not valid for plant layout prob-lems. Recognizing the relevance of facility size and the existenceof aisles for material handling between facilities in a plant, we ad-dress the layout addition problem of placing a rectangular newfacility in a plane in the presence of other rectangular existingfacilities and an aisle structure. We consider the cases of placing

ll rights reserved.

: +1 1 7166453302.

the new facility directly onto the existing aisles and adding oneor two sub-aisles to connect the new facility to the existing aisles.

The rest of the paper is organized as follows: Section 2 providesa literature review. In Section 3, we formally introduce and definethe problem. In Section 4, we describe a grid construction proce-dure. In Section 5, we detail our approach to the problem, consid-ering both the situation of adding a new facility directly onto theexisting aisle structure, and the simultaneous consideration ofplacement of a new facility and configuration of sub-aisles. Thecomplexity of our solution algorithm is analyzed in Section 6. Anexample is presented in Section 7. Finally, a summary and conclu-sions of our work are presented in Section 8.

2. Literature review

Restricted location problems are the closely related researchareas to our work where restrictions are imposed on locatingnew facilities. The restricted area falls into three classes: barriers(which prohibit location and travel), forbidden regions (which pro-hibit location but permit travel at no extra cost), and generalizedcongested regions, GCR (which prohibit location but permit travelat a penalty). For restricted location problems, readers are referredto Katz and Cooper (1981), Larson and Sadiq (1983), Batta et al.(1989), Aneja and Parlar (1994), Butt and Cavalier (1996), Klamroth(2000), Dearing et al. (2002) and Nandikonda et al. (2003), amongothers.

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M. Zhang et al. / European Journal of Operational Research 197 (2009) 154–165 155

In all the studies referenced above, the authors assumed thatthe new facilities to be located were infinitesimal. Recognizingthe practical relevance of facility size consideration, Savas et al.(2002) first considered the optimal placement of a finite-sizenew facility in the presence of arbitrarily-shaped barriers withthe median objective and rectilinear distance metric. Variantworks of Savas et al. (2002) have been studied by Sarkar et al.(2005), Kelachankuttu et al. (2007) and Sarkar et al. (2007). Sarkaret al. (2005) considered the placement of a finite-size new facilityin the presence of existing facilities with a median objective, recti-linear distance metric, and rectangular shaped facilities. The re-stricted area is in the form of generalized congested regions ascompared to barriers in Savas et al. (2002), additionally the areaof the new facility to be located is known but its exact dimensionsare to be determined, whereas the shape of the new facility isknown a priori in Savas et al. (2002). Kelachankuttu et al. (2007)developed contour lines with respect to placing a new rectangularfacility in the presence of rectangular existing facilities. Their studyis important when the optimal site is not suitable for facility place-ment with practical constraints. Sarkar et al. (2007) revisited thestudy of Savas et al. with a center objective.

The above studies assumed that the material handling betweenfacilities took place along a shortest feasible rectilinear path be-tween the facility servers (I/O points). As claimed in the introduc-tion, interaction between facilities is normally restricted to amaterial handling network in a plant layout application. A widevariety of network location problems have been studied, for exam-ple, p-median problem (Hakimi, 1964), fixed charge location prob-lem (Kuehn and Hamburger, 1963), set covering location problem(Toregas et al., 1971), maximal covering location problem (Churchand ReVelle, 1979), etc. An excellent review of discrete networklocation problems can be found in Drezner and Hamacher (2004).In an attempt to relax the assumption that the underlying networkis given, facility location-network design models were proposed,for example, Melkote (1996) proposed models to simultaneouslyoptimize facility location and the underlying network design. Gen-erally, facility location-network design models and network designmodels do not take into account the issue of the facility’s size,which is of obvious importance in plant layout. This motivatesthe work presented in this paper.

Our work, in a way, may be also viewed as an extension of thework by Savas et al. (2002). We consider placing a new facilitywhile using an existing aisle structure. As travel is restricted tothe aisles, it may be necessary and/or advantageous to constructnew sub-aisles which connect the new facility to the existing aislestructure. Motivated by these considerations we analyze the prob-lem of placement of a finite-size new facility as well as connectionof the new facility to the existing aisle structure with restrictingtravel on aisles.

Fig. 1. Illustration of the

3. Problem description

3.1. Problem statement

The problem that we address is that of placing a new facility(NF) in a manufacturing plant. This NF must be placed so that itdoes not overlap either the existing facilities (EFs) or the existingaisle structure. For the sake of analytical tractability we make sev-eral key simplifying assumptions:

� The plant is rectangular.� The EFs are rectangular, with the sides of each EF parallel to the

sides of the plant.� There is an existing aisle structure through which all material

handling takes place. The segments of this aisle structure areparallel to the sides of the plant.

� Each EF has a single I/O point which is located on the aislestructure.

� The NF is rectangular and placement must be done so that thesides of the NF are parallel to the sides of the plant.

� The NF has a single I/O point.

The first version of the problem we consider is when no newaisles can be constructed. Thus the NF has to be placed so thatits I/O point coincides with the existing aisle structure. In this casewe focus on the objective of minimizing the material handling costbetween the EFs and the NF.

The second version of the problem is when sub-aisle construc-tion is permitted to connect the NF to the existing aisle structure.Both the cases of one new sub-aisle and two new sub-aisles areexamined. Each newly constructed sub-aisle must be parallel tothe sides of the plant, and it cannot overlap with the existing aislesexcept for exactly one connection point where the new sub-aisleintersects the existing aisle structure. The introduction of one ortwo sub-aisles can decrease the shortest distance between twoEFs. Thus the objective in this case is minimization of the totalmaterial handling cost (i.e. between the EFs, and between the NFand EFs) plus the cost of constructing sub-aisles.

3.2. Definitions and notation

We assume that each facility, including the new one, is a rectan-gular region of finite area in R2. Let Bj denote the set of pointsðx; yÞ 2 R2 that represent EF j. The collection of the EFs is repre-sented by B ¼ [jBj, and D denotes the set of I/O points associatedwith the EFs. Let H denote the set of points that represent the NF.

G ¼ ðN;AÞ denotes the set of points in R2 that represent the net-work of the existing aisle structure, where N is the set of nodesincluding the intersections or end points of aisles and the I/O

system considered.

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Fig. 2. Illustration of grid construction.

Fig. 3. Sub-rectangles of feasible region within a cell.

156 M. Zhang et al. / European Journal of Operational Research 197 (2009) 154–165

points associated with the EFs, and A is the set of arcs denoting theaisles between a pair of nodes. An illustration of such a system isshown in Fig. 1a, where the bold lines represent the existing aislesand the black and white dots denote the nodes. Specifically, theblack dots (nodes 1, 2 and 3) represent the I/O points of the EFs.

For the first version of the problem, the coordinates of the I/Opoint for the NF determine a solution. However, this is not the casefor the second version of our problem. Each newly constructed sub-aisle intersects the existing aisle structure at a connection point.The optimal sub-aisle from a given location X to a connection pointz 2 G has to be a shortest feasible rectilinear path between them.Consequently we let ‘½X; Z; P� denote the solution for our problem.Here X ¼ ðx; yÞ represents the location (point coordinates) for theNF’s I/O point, Z is the set of locations with its ith elementzi ¼ ðxzi

; yziÞ representing the coordinates for the ith connection

point, and P is the set of paths with its ith element pi denotingthe shortest feasible rectilinear path from X to the ith connectionpoint in Z. Fig. 1b illustrates the placement of the NF, one newlyconstructed sub-aisle (dash line) and a single connection point z.

Let HðXÞ denote the set of points that correspond to the NFwhen its I/O point is at X. The feasible region for the placementof the NF is defined as F ¼ fX : HðXÞ \ B ¼ /;HðXÞ \ G ¼ /g. Read-ers are referred to Savas et al. (2002) for details of identificationof the feasible region.

There are two types of material handling interactions in ourproblem. First, there is interaction between EF i and the NF, the fre-quency of which is denoted by wi P 0. Second, there is interactionbetween EF i and EF j, the frequency of which is denoted by hij P 0.The interaction between any two points takes place through ashortest path on the aisle network. Consider a solution ‘, whichindicates a feasible placement of the NF and one or more newlyconstructed sub-aisles that link the I/O point of the NF to the exist-ing aisle structure. Let d‘ði; jÞ represent the shortest path distancebetween the I/O points of EFs i and j when the solution is ‘, andlet d‘ði;XÞ represent the shortest path distance between the I/Opoints of EF i and the NF at X given ‘. We also let r‘ denote the totallength of constructed new sub-aisles for solution ‘.

For a given solution ‘, the total weighted travel distance be-tween the NF and EFs is

f1ð‘Þ ¼Xi2D

wid‘ði;XÞ:

Similarly, the total weighted travel distance between the EFs is

f2ð‘Þ ¼Xi2D

Xj2D

hijd‘ði; jÞ:

The construction cost for the new sub-aisles is

f3ð‘Þ ¼ Kr‘;

where K is the unit construction cost appropriately amortized withrespect to units of wi and hij.

We seek a solution that minimizes the sum of f1ð‘Þ, f2ð‘Þ andf3ð‘Þ.

4. Preliminaries

To facilitate the presentation of our approach, we describe thegrid construction procedure that helps identify the basic cell forour analysis, introduce necessary definitions and present a few re-sults from Hakimi (1964) and Savas et al. (2002).

4.1. Grid construction and cell formation

A grid construction procedure in the presence of barriers thatdivides the region into cells has been established in the work of

Larson and Sadiq (1983); we note that the NF and EFs all act as bar-riers. We follow the same procedure to draw horizontal and verti-cal lines through the vertices of each EF and its I/O point, with eachline terminated at the boundary of the first EF encountered, or atthe boundary of the bounding rectangle that encloses all EFs andthe existing aisle structure. We also draw horizontal and verticallines through the nodes on the aisle network, with each line termi-nated at the boundary of the first EF encountered, or at the bound-ary of the bounding rectangle. We refer to these lines formed asgridlines. This grid is an extension of the grid proposed by Larsonand Sadiq (1983) because additional lines are drawn with respectto the aisle network.

The EFs and existing aisle structure along with the gridlines di-vide the feasible region into a number of cells. All the cells gener-ated are also rectangular with horizontal and vertical edgesbecause the EFs are rectangular and the aisles are also horizontalor vertical. Each cell boundary is composed of segments of EFs, seg-ments of aisles or gridlines. We note that the aisles are also dividedinto a set of segments, called edges by these gridlines. An illustra-tion of gridlines constructed for a three-EF example is shown inFig. 2, where arc (7,3) is divided into two edges (7,9) and (9,3).

The set of feasible placements within cell C is denoted by FC . It ispertinent to note here that a feasible placement X 2 FC does notnecessarily require containment of the NF within cell C. FC is eitheran empty set, a segment, a rectangle or a combination of rectanglesbecause the NF and cells are rectangles. On a horizontal/verticalsegment AB within cell C, if X is feasible at both A and B but not fea-sible on a location strictly within AB, there must exist an EF or anedge to cause this situation. In this case, cell C would not existaccording to the above grid construction procedure. Additionally,X is assumed to be on the boundary of the NF, consequently if FC

is a combination of rectangles, it is of L shape or T shape as Fig. 3illustrates. Without loss of generality, FC is assumed to be of Tshape and is divided into sub-rectangles as shown in Fig. 3. Notethat at most three sub-rectangles will be formed in FC . RðFCÞ de-notes one of the sub-rectangles in FC . Let E1ðRðFCÞÞ; E2ðRðFCÞÞ,E3ðRðFCÞÞ and E4ðRðFCÞÞ denote the corners of RðFCÞ, starting fromthe bottom left corner and labeling in the counter-clockwise

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Fig. 4. The eight sub-regions around a cell.

Fig. 5. A point and an edge.

M. Zhang et al. / European Journal of Operational Research 197 (2009) 154–165 157

direction. Let C1;C2; C3;C4 denote the corners of C, starting from thebottom left corner and labeling in the counter-clockwise direction.The grid construction procedure partitions the region outside a cellC into at most eight sub-regions. For the sake of convenience, wegive names to the sub-regions obtained with respect to this cell,as noted in Fig. 4. Note that the sub-regions outside an cell donot include their boundaries.

4.2. An edge and a cell

To facilitate the analysis in Section 5, we introduce the follow-ing definitions. Let ðxi; yiÞ be the coordinates of point i. Given anedge ðu; vÞ with coordinates ðxu; yuÞ and ðxv; yvÞ, if ðu; vÞ is horizon-tal (vertical), we assume that xu < xv ðyu < yvÞ.

Definition 1. Two points i and j with coordinates ðxi; yiÞ and ðxj; yjÞare visible to each other if the shortest feasible rectilinear distancebetween the two points is jxi � xjj þ jyi � yjj.

Definition 2. A point i with coordinates ðxi; yiÞ is inside the span ofa horizontal (vertical) edge ðu; vÞ with coordinates ðxu; yuÞ andðxv; yvÞ if xu 6 xi 6 xv ðyu 6 yi 6 yvÞ; otherwise point i is outsidethe span of edge ðu; vÞ.

Fig. 6. An edge

Definition 3. A point i with coordinates ðxi; yiÞ is visible to a hori-zontal edge ðu; vÞ if the shortest feasible rectilinear distance fromi to ðu; vÞ is equal to

jyi � yuj if i is inside the span of ðu; vÞ;jxi � xuj þ jyi � yuj if i is to the left side of ðu; vÞ;jxi � xvj þ jyi � yvj if i is to the right side of ðu; vÞ;

8><>:otherwise point i is invisible to ðu; vÞ. The visibility of point i with re-spect to a vertical edge ðu; vÞ can be defined similarly.

Note that a point could be visible to an edge but outside thespan of this edge. Also, a point could be inside the span of an edgebut invisible to this edge. Fig. 5 illustrates the possible cases.

and a cell.

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158 M. Zhang et al. / European Journal of Operational Research 197 (2009) 154–165

Definition 4. A point i with coordinates ðxi; yiÞ is inside the span ofa cell C if XminðCÞ 6 xi 6 XmaxðCÞ or YminðCÞ 6 yi 6 YmaxðCÞ, whereXminðCÞ, XmaxðCÞ;YminðCÞ;XmaxðCÞ are the respective bounds on xcoordinate and y coordinate of the points inside cell C.

Definition 5. An edge ðu; vÞ is inside the span of a cell C if any pointon edge ðu; vÞ is inside the span of cell C; otherwise it is outside thespan of C.

Definition 6. An edge ðu; vÞ is visible to a cell C if any point inside Cis visible to ðu; vÞ.

Note that an edge could be visible to a cell but outside the spanof this cell. Also, an edge could be inside the span of a cell but invis-ible to this cell. Fig. 6 illustrates the possible cases.

Several other observations are in order:

(1) An edge is either horizontal or vertical. Without loss of gen-erality (since the coordinate system can be rotated by 90�),we assume that an edge is horizontal in this paper unlessspecified otherwise.

(2) An edge, which is fully contained in either one of theregions: WðCÞ; SðCÞ; EðCÞ and NðCÞ, is inside the span of cellC. For example, edge ðu; vÞ in Fig. 6a and c.

(3) An edge, which is fully contained in either one of theregions: SWðCÞ; SEðCÞ;NEðCÞ and NWðCÞ, is outside the spanof cell C. For example, edge ðu; vÞ in Fig. 6b.

(4) An edge in region WðCÞ or EðCÞ must be invisible to cell C,otherwise, cell C would not exist. For example, edge ðu; vÞin Fig. 6c.

(5) Edge ðu; vÞ may span several sub-regions above the top lineof cell C, or those below the bottom line of cell C as shownin Fig. 6d. In this case, edge ðu; vÞ must be invisible to cellC, otherwise, edge ðu; vÞ would not exist.

To this end, we conclude that four cases are sufficient for anal-ysis: (1) edge ðu; vÞ is fully contained inside sub-region SðCÞ; (2)edge ðu; vÞ is fully contained inside sub-region SWðCÞ; (3) edgeðu; vÞ is fully contained inside sub-region WðCÞ; and (4) edgeðu; vÞmay span several sub-regions below the bottom line of C. Thisis because the results, if any for other cases, will follow directly dueto symmetry. Fig. 6 illustrates one example for each case.

4.3. Some results

For our future analysis, it is necessary to list some previous re-sults suitably adapted for our work.

Result 1. Nodes on a network are candidate locations for pNFs onthe network so as to minimize the sum of weighted distancebetween the NFs and EFs located at nodes of the network. Result 1is also referred as the nodal optimality property for the p-medianproblem on a network (Hakimi, 1964).

Result 2. A shortest feasible rectilinear path which passes throughcell corner Ck and corner EkðRðFCÞÞ; k 2 f1;2;3;4g exists from the I/O point of each EF to the I/O point of NF at X for all X 2 RðFCÞ (Savaset al., 2002, Lemma 2).

Fig. 7. Sub-aisle connection to an existing edge.

5. The approach

In this section, we present the approach for the two versions ofour problem. We start by considering the situation where the NF isplaced such that no new sub-aisle needs to be constructed. Thenwe consider the cases of constructing either one or two sub-aisleswhich connect the NF to the existing aisle structure. Note that the

single sub-aisle case does not change the distance between the EFs,while the two sub-aisles case can. This significantly complicatesthe analysis.

5.1. Addition of one new facility on to the existing aisle structure

We start with a discussion of the case of a single NF and no newsub-aisle. Here the problem is to find the best placement for the NFsuch that X 2 G \ F. In this case, it is obvious that f2ð‘Þ is a constantand f3ð‘Þ is equal to 0. Therefore we want to minimize f1ð‘Þ.

The problem is similar to the 1-median location problem(Hakimi, 1964), except that the placement of X has to be feasible,i.e. the resultant NF will not overlap with the EFs or interfere withthe existing aisle structure. If the Hakimi node is a feasible location,then it is obviously the optimal location. However, the Hakiminode may not always be feasible. For instance, suppose that node2 in Fig. 1 happens to be the Hakimi node. This location may notbe feasible as it may cause an overlap between the NF and theexisting aisles. To this end, we define a segment ½p; q� � G as a fea-sible segment if X is feasible over ½p; q�.

Theorem 1. For any feasible segment ½p; q� � G, the function f1ð‘Þ isconcave over ½p; q�.

Proof. This is a corollary of the main nodal optimality result inHakimi (1964). h

Let Q denote the set of end points of all the feasible segments.Theorem 1 implies that Q is the set of candidate locations for theoptimal placement of the NF on the existing aisle structure. Theelement of the set Q with minimum value of f1ð‘Þ is an optimalplacement of X.

5.2. New facility placement and configuration of a single sub-aisle

We now allow free placement of the NF as long as there is nointerference between the NF and the EFs or the aisle structure.We construct one sub-aisle that connects the NF to the existingaisle structure. This sub-aisle cannot interfere with any of the EFsnor overlap with the existing aisle structure. The problem, in thiscase, is similar to the 1-median problem as the construction ofone sub-aisle would not affect the interactions between the EFs.Consequently, we want to minimize f1ð‘Þ þ f3ð‘Þ, i.e.,

minX2F

minz2G

Xi2D

wi½dði; zÞ þ rðz;XÞ� þ Krðz;XÞ( )

: ð1Þ

Here dði; zÞ denotes the distance of the shortest path on the aislenetwork which connects EF i and z, and rðz;XÞ denotes the distanceof a shortest feasible rectilinear path between z and X.

We now present Lemma 1, which then provides the basis for analgorithm for determining the optimal solution.

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M. Zhang et al. / European Journal of Operational Research 197 (2009) 154–165 159

Lemma 1. Given a location X and an edge ðu; vÞ, the optimal sub-aislebetween X and ðu; vÞ that minimizes f1ð‘Þ þ f3ð‘Þ is the shortestfeasible rectilinear path between them.

Proof. Consider the edge ðu; vÞ in Fig. 7. Let z denote the shortestconnection point from X to ðu; vÞ and let z0 denote any connectionpoint such that rðz0;XÞ > rðz;XÞ. We need to prove thatf1ðX; z0Þ þ f3ðX; z0Þ > f1ðX; zÞ þ f3ðX; zÞ.

It is obvious that f3ðX; z0Þ > f3ðX; zÞ.The following proof shows f1ðX; z0ÞP f1ðX; zÞ, using similar

arguments to those in Hakimi (1964). N1 is defined as the set ofnodes that reaches X more efficiently through node u and N2 as theset of nodes reaching X more efficiently through v, with ties brokenarbitrarily. N1 and N2 are thus mutually exclusive sets whose unionis equal to D. If the sub-aisle aisle changes from ðX; zÞ to ðX; z0Þ,nodes in N1 require a longer distance to reach X through u. Forthose nodes in N2, the distance to X through v remains unchanged.The result follows. h

Lemma 1 implies that the best configuration of a single sub-aisle uses the shortest feasible rectilinear path between the loca-tion of the NF and an edge that need to be connected. Note thatthere possibly exist multiple shortest feasible rectilinear pathsfrom a location to an edge, in other words, multiple optimal config-urations of a single sub-aisle may exist. In this case, one of theshortest feasible rectilinear paths can be determined using an algo-rithm similar to the one in Larson and Li (1981). In the followingsections of the paper, the best configuration of a single sub-aisleis defined as the shortest feasible rectilinear path determined byusing such an algorithm. According to Lemma 1, Algorithm 1 inthe following chooses the best solution from all the combinationsof a NF’s location and an edge:

Algorithm 1 (Single new facility, one sub-aisle case)

1. FOR each cell C � F2. IF FC–/ THEN3. For each RðFCÞ � FC

4. FOR each edge ðu; vÞ 2 A5. FOR each candidate location X 2 RðFCÞ6. Determine the shortest feasible rectilinear path from

X to ðu; vÞ7. Evaluate the objective function and record the best

solution

Algorithm 1 will achieve the optimal solution within finite stepsonly if there are a finite number of candidate locations to be con-sidered in each RðFCÞ � FC . Lemma 2 shows that at most two can-didate placements in each RðFCÞ � FC with respect to edge ðu; vÞneed to be considered.

Fig. 8. Candidate placements with respect to an edge.

Lemma 2. Given an edge ðu; vÞ and a cell C, at most two candidateplacements with respect to edge ðu; vÞ for the NF in each RðFCÞ � FC

need to be considered and the candidate placement is one of thecorners of RðFCÞ.

Proof. (1) We first start with the case where edge ðu; vÞ is insidethe span of cell C and also visible to C, as Fig. 8 illustrates. TheNF and RðFCÞ are shown in Fig. 8. It is obvious that any placementinside RðFCÞ is dominated by at least one placement on segment½E1ðRðFCÞÞ; E2ðRðFCÞÞ�, which is the closest side to ðu; vÞ. Accordingto the main nodal optimality result in Hakimi (1964), it is not dif-ficult to show that the objective function f1ðX; zÞ þ f3ðX; zÞ is con-cave over segment ½E1ðRðFCÞÞ; E2ðRðFCÞÞ�. Thus the candidateplacements should be E1ðRðFCÞÞ and E2ðRðFCÞÞ. In general, the twocorners on the side of RðFCÞ, which is parallel and closer to ðu; vÞ,are the candidate placements. This establishes the result for thisspecific situation.

(2) Many other cases are possible as illustrated in Fig. 6. In thesecases, we first prove the following statements: (a) a shortestfeasible rectilinear path from any placement at X 2 RðFCÞ to edgeðu; vÞ will intersect edge ðu; vÞ either at u or v, i.e. one of the endnodes of ðu; vÞ; (b) a shortest feasible rectilinear path which passesthrough Ck and EkðRðFCÞÞ; k 2 f1;2;3;4g, exists from X 2 RðFCÞ tou(v). We then demonstrate that Lemma 2 holds according tostatements (a) and (b).

For the case where edge ðu; vÞ is outside the span of C andvisible to C (Fig. 6b), it is obvious that the shortest feasiblerectilinear path from X 2 RðFCÞ to ðu; vÞmust intersect ðu; vÞ at u orv. If edge ðu; vÞ is invisible to C, it could be inside or outside thespan of C (see Fig. 6c and d). The same argument is employed toprove these two sub-cases. Suppose that the shortest feasiblerectilinear path from X 2 RðFCÞ to edge ðu; vÞ intersects ðu; vÞ at zinstead of u or v, there must exist at least one EF (acting as abarrier) to drive the shortest feasible rectilinear path fromX 2 RðFCÞ to ðu; vÞ to arrive at z, as shown in Fig. 9. In this case,edge ðu; vÞ would not exist according to the grid constructionprocedure in Section 3.1.

Therefore statement (a) follows: according to Result 2, ashortest feasible rectilinear path which passes through cell cornerCk and corner EkðRðFCÞÞ; k 2 f1;2;3;4g exists from u ðvÞ toX 2 RðFCÞ. Statement (b) follows.

Statements (a) and (b) together show that any placement insideRðFCÞ is dominated by one of the corners EkðRðFCÞÞ; k 2 f1;2;3;4g.This is because rðX;uÞP mink2f1;2;3;4gfrðEkðRðFCÞÞ;uÞg or rðX; vÞPmink2f1;2;3;4gfrðEkðRðFCÞÞ; vÞg. Therefore we let Eu denote the set ofcorners such that the corresponding shortest feasible rectilinearpaths share node u as a connection point. Similarly, Ev is defined asthe set of corners such that these paths share node v as aconnection point. Let rðEkðRðFCÞÞ; ðu; vÞÞ denote the shortest feasi-ble rectilinear distance from corner EkðRðFCÞÞ; k 2 f1;2;3;4g toedge ðu; vÞ. Let k̂u ¼ argminfrðEkðRðFCÞÞ; ðu; vÞÞ; k 2 Eug and k̂v ¼

Fig. 9. Connection at end nodes of an edge.

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Fig. 10. Shortest path connection to sub-aisles.

160 M. Zhang et al. / European Journal of Operational Research 197 (2009) 154–165

argminfrðEkðRðFCÞÞ; ðu; vÞÞ; k 2 Evg, then Ek̂uðRðFCÞÞ and Ek̂v

ðRðFCÞÞare the candidate placements. h

Lemma 2 permits us to arrive at the following result:

Theorem 2. There are a finite number of candidate placements for theNF and a finite number of candidate configurations of one sub-aislethat need to be considered when seeking an optimal solution forplacement of NF and construction of one sub-aisle.

Proof. The feasible region for the placement of the NF is dividedinto a finite number of cells. Also, there are a finite number ofedges in the existing aisle structure. Thus the number of combina-tions of cell/edge is finite. According to Lemma 2 and the fact thatat most three sub-rectangles can be formed in each cell, each cell/edge combination considers at most six candidate placements forthe NF. Since the best sub-aisle configuration from one locationto one edge is defined as the shortest feasible rectilinear pathbetween them determined by an algorithm similar to the one inLarson and Li (1981), the number of candidate sub-aisle configura-tions is also finite. The result follows. h

Fig. 11. Movement of the NF within a cell.

5.3. Placement of one new facility and configuration of two sub-aisles

We now consider the case of constructing two sub-aisles fromthe NF to the existing aisle structure. For this case we also needto take into consideration the material handling costs betweenthe EFs, since the addition of two new sub-aisles may create ashorter alternate path for some of the existing flows. The twonew sub-aisles intersect the existing aisle structure at two connec-tion points (denoted by z1 and z2), f1ð‘Þ; f2ð‘Þ and f3ð‘Þ are rewrittenas follows:

f1ð‘Þ ¼ f1ðX; z1; z2Þ ¼Xi2D

wi minfdði; z1Þ

þ rðz1;XÞ; dði; z2Þ þ rðz2;XÞg;f2ð‘Þ ¼ f2ðX; z1; z2Þ ¼

Xi2D

Xj2D

hijd‘ði; jÞ;

f3ð‘Þ ¼ f3ðX; z1; z2Þ ¼ K½rðz1;XÞ þ rðz2;XÞ�;

where the subscript ‘ signifies that the shortest distance betweenEF i and EF j may change due to the two newly constructed sub-aisles.

Let f ðX; z1; z2Þ ¼ f1ðX; z1; z2Þ þ f2ðX; z1; z2Þ þ f3ðX; z1; z2Þ. The opti-mization problem can be restated as follows:

minX2F

minz1 ;z22G

ff1ðX; z1; z2Þ þ f2ðX; z1; z2Þ þ f3ðX; z1; z2Þg:

Lemma 3 presents a result similar to that in Lemma 1.

Lemma 3. Given a location X, the optimal sub-aisles from X to twogiven separate edges consist of two shortest feasible rectilinear pathsfrom X to each edge.

Proof. Consider edges ðu1; v1Þ and ðu2; v2Þ in Fig. 10 where bothedges are horizontal. Let z1 and z2 denote the shortest connectionpoints from X to edge ðu1; v1Þ and ðu2; v2Þ, respectively, and let z01,z02 denote any connection points such that rðz01;XÞ > rðz1;XÞ andrðz02;XÞ > rðz2;XÞ. It is obvious that f3ðX; z01; z02Þ > f3ðX; z1; z2Þ.

Similarly, N1;N2;N3 and N4 are defined as the sets of nodes thatreach X most efficiently through u1, v1; u2 and v2, respectively(with ties broken arbitrarily). Following the logic presented in theproof of Lemma 1, it is easy to show that f1ðX; z01; z02ÞP f1ðX; z1; z2Þ.

Again, applying the same logic, we have f2ðX; z01; z02ÞPf2ðX; z1; z2Þ.

The above demonstrates the result in the case where both edgesare horizontal. Following the same logic, the result can also be

established for the case where one edge is horizontal and one edgeis vertical. Lemma 3 follows. h

Lemma 3 implies that an algorithm similar to Algorithm 1 canbe developed to evaluate all the combinations of a candidate loca-tions for the NF and two edges. Therefore we first show in Lemma 4that the candidate locations in RðFCÞ with respect to two edges arefinite in a special case, then extend this result for a general case inTheorem 3. Finally, Algorithm 2 is presented for determining theoptimal solution for the two sub-aisles case.

Before stating Lemma 4, we introduce f ðX; z1; z2Þje1 ;e2where the

conditional subscript on e1 and e2 signifies the condition of beinggiven z1 2 e1 and z2 2 e2.

Lemma 4. Consider two separate edges e1; e2 and a cell C, with theproperty that both edges are visible to C, as shown in Fig. 11. Thefunction f ðX; z1; z2Þje1 ;e2

is concave over the set RðFCÞ.

Proof. We start with the case where both edges are horizontal. Inthe case where one edge is horizontal and one edge is vertical, theresult can be demonstrated with the same argument. The followingproof refers to Fig. 11.

Let e1; e2 denote edges ðu1; v1Þ and ðu2; v2Þ, respectively. Wehave

f ðX; z1; z2Þje1 ;e2¼ f1ðX; z1; z2Þje1 ;e2

þ f2ðX; z1; z2Þje1 ;e2

þ f3ðX; z1; z2Þje1 ;e2:

(1) We first prove that f1ðX; z1; z2Þje1 ;e2is concave over RðFCÞ.

Consider a location B1 2 RðFCÞ. Further consider some feasibledirection of movement from location B1, as shown in Fig. 11, to a

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Fig. 13. Example for varying cell corner assignment to edge.

M. Zhang et al. / European Journal of Operational Research 197 (2009) 154–165 161

location B2, where B2 2 RðFCÞ. Also any location D on the linesegment joining B1 and B2 has the property D 2 RðFCÞ (If no suchpoint B2 exists, then RðFCÞ is a singleton set and the result follows).

Let the variable d parametrize the movement along B1B2 whichis d Euclidean distance units from B1. For the sake of notationsimplicity, let E1; E2, E3 and E4 denote u1; v1;u2 and v2, respectively,as shown in Fig. 11. We have

f1ðD; z1; z2Þje1 ;e2¼Xi2D

wi minkfdði; EkÞ þ dðEk;DÞg:

For given k; dði; EkÞ is constant with respect to d, and it is easy toshow that dðEk;DÞ is linear in d

dðEk;DÞ ¼

dðEk;B1Þ þ dðþ cos hþ sin hÞ for k ¼ 1;dðEk;B1Þ þ dð� cos hþ sin hÞ for k ¼ 2;dðEk;B1Þ þ dðþ cos h� sin hÞ for k ¼ 3;dðEk;B1Þ þ dð� cos h� sin hÞ for k ¼ 4;

8>>><>>>:

where h is as shown in Fig. 11.Therefore dði;DÞ ¼minkfdði; EkÞ þ dðEk;DÞg is the minimum of

four linear functions and is concave. Because f1ðD; z1; z2Þje1 ;e2is the

sum of positively weighted concave functions, it is also concave.(2) We now prove that f2ðD; z1; z2Þje1 ;e2

is also concave overRðFCÞ.

The two new sub-aisles may create a shorter alternate path forsome of the existing flows. Therefore

f2ðD; z1; z2Þje1 ;e2¼Xi2D

Xj2D

hij minfdði; jÞ;dDði; E1; E3; jÞ; dDði; E1; E4; jÞ;

dDði; E2; E3; jÞ; dDði; E2; E4; jÞg;

where dDði; Ek; El; jÞ ¼ dði; EkÞ þ dðEk;DÞ þ dðD; ElÞ þ dðEl; jÞ; k; l ¼ 1;2;3;4.

dði; jÞ; dði; EkÞ and dðEl; jÞ are constants with respect to d, and it iseasy to show that dðEk;DÞ þ dðD; ElÞ is linear in d.

We have

dðEk;DÞþdðD;ElÞ¼

dðEk;B1ÞþdðB1;ElÞþdðþ2coshÞ for k¼1; l¼3;dðEk;B1ÞþdðB1;ElÞ for k¼1; l¼4;dðEk;B1ÞþdðB1;ElÞ for k¼2; l¼3;dðEk;B1ÞþdðB1;ElÞþdð�2sinhÞ for k¼2; l¼4:

8>>><>>>:

Therefore DDði; jÞ ¼minfdði; jÞ;dDði; E1; E3; jÞ; dDði; E1; E4; jÞ; dDði; E2;

E3; jÞ;dDði; E2; E4; jÞg is the minimum of five linear functions andtherefore concave. Because f2ðD; z1; z2Þje1 ;e2

is the sum of positivelyweighted concave functions, it is also concave.

(3) Since f3ðD; z1; z2Þje1 ;e2¼ f3ðB1; z1; z2Þje1 ;e2

; f3ðD; z1; z2Þje1 ;e2is

constant with respect to d and therefore concave.We conclude that f ðX; z1; z2Þje1;e2

is concave over RðFCÞ. h

It is probable that an edge is invisible to a cell as Fig. 12 illus-trates. This case complicates the analysis. We now introduce sev-eral definitions similar to those defined in Nandikonda et al.

Fig. 12. Edge ðu1; v1Þ invisible to cell C.

(2003). A shortest feasible rectilinear path from X 2 RðFCÞ to edgeðu; vÞ passes through either one of the cell corners if ðu; vÞ is outsideor invisible to cell C. We call that the assignment of edge ðu; vÞ tocell corner Ck, if this shortest feasible rectilinear path passesthrough Ck; k ¼ 1;2;3;4. If the shortest feasible rectilinear pathfrom X 2 RðFCÞ to edge ðu; vÞ passes through Ck, its distance func-tion can be explicitly presented as rðX; ðu; vÞÞ ¼ dðX;CkÞþrðCk; ðu; vÞÞ, where rðCk; ðu; vÞÞ is a constant.

However, the assignment of edges to cell corners can changeupon moving the placement X in RðFCÞ, as illustrated by the exam-ple in Fig. 13. When the placement X 2 RðFCÞ is to the left side of,but not on line segment C5C6, a shortest feasible rectilinear pathfrom X to ðu; vÞ goes through cell corner C1. While if X 2 RðFCÞ isto the right side of, but not on line segment C5C6, the path goesthrough cell corner C2. For X 2 RðFCÞ on line segment C5C6, bothalternatives (going through C1 or C2) are equally attractive. For thisreason, we call the line segment C5C6 an equal travel time line(ETTL). Similar definitions can be found in Nandikonda et al. (2003).

We follow the procedure established in Nandikonda et al.(2003) to construct ETTLs associated with an edge ðu; vÞ and a cellC. Note that the edge is outside the span of the cell or invisible to it,otherwise the shortest feasible rectilinear path from X 2 RðFCÞ toðu; vÞ may not pass through the cell corners as shown in Fig. 5a.In fact, an edge will generate at most one ETTL in a cell – seeNandikonda et al. (2003).

The distinctive feature of a sub-cell of RðFCÞ is that the form ofthe distance function rðX; ðu; vÞÞ does not change as long as X iswithin a sub-cell of RðFCÞ. This is because for any X within a sub-cell of RðFCÞ, a shortest feasible rectilinear path always goes thoughthe same corner of C. Combining this observation and Lemma 4, wearrive at the following result:

Theorem 3. The function f ðX; z1; z2Þje1 ;e2is concave over each sub-cell

of RðFCÞ, where cell C belongs to the finite number of cells in thefeasible region as formed in Section 3 and the sub-cells of RðFCÞ areformed by the ETTLs associated with e1 and C, and e2 and C.

Proof. Since the form of the distance function rðX; ðu; vÞÞ does notchange as long as X is within a sub-cell of RðFCÞ, a similar argumentto that used in the proof of Lemma 4 allows us to conclude thatf ðX; z1; z2Þje1 ;e2

is concave over each sub-cell of RðFCÞ. h

Algorithm 2 (Single new facility, two sub-aisles case)

1. FOR each cell C � F.2. IF FC–/ THEN3. FOR each RðFCÞ � FC

4. FOR each edge ðui; viÞ 2 A5. Generate the ETTL associated with ðui; viÞ and C

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162 M. Zhang et al. / European Journal of Operational Research 197 (2009) 154–165

6. FOR each edge ðuj; vjÞ 2 A (j–i)7. Generate the ETTL associated with ðuj; vjÞ and C8. Let CORNER denote the set of corners associated

with the sub-cells of RðFCÞ9. FOR each corner in CORNER

Fig. 14. Ex

Fig. 15. Feasible regi

10. Find the shortest feasible rectilinear path fromthe corner to ðui; viÞ

11. Find the shortest feasible rectilinear path fromthe corner to ðuj; vjÞ

12. Evaluate the objective function and record thebest solution

ample.

on for example.

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M. Zhang et al. / European Journal of Operational Research 197 (2009) 154–165 163

The complexity analysis of Algorithms 1 and 2 is presented inSection 5. We briefly discuss the placement of multiple NFs. Inthis case, we need to consider the interactions between NFs andEFs as well as between NFs and NFs. A straightforward heuristicis to place one NF at one time sequentially, using Algorithms 1or 2.

6. Solution complexity

It is clear that our solution method for the no sub-aisle situationhas a finite number of steps. For the one sub-aisle case and twosub-aisles case, the number of cells is an important factor govern-ing the solution complexity. Formally, n rectangular EFs generateat most 3n vertical gridlines and 3n horizontal gridlines. Note thatone gridline is generated from each EF associated with its single I/Opoint. Suppose that the original material handling network has av

vertical arcs and ah horizontal arcs. We use a to signify the upperbound over av and ah, i.e. a ¼maxfav; ahg. In the worst case a addi-

Table 1Results when no sub-aisle is constructed

Case X f1 þ f2 Remark

1 (7,11) 154þ 338 ¼ 492 Optimal2 (8,11) 150þ 338 ¼ 4883 (15,11) 178þ 338 ¼ 5164 (16,11) 192þ 338 ¼ 530

Table 2Results when one sub-aisle is constructed

Cell Case X z

A 1 (7,14) (5,14)B 2 (8,14) (5,14)C 3 (10,14) (5,14)D 4 (13,14) (5,14)E 5 (15,14) (5,14)F 6 (3,11) (5,11)F 7 (3,9) (5,9)G 8 (10,8) (8,8)G 9 (10,6) (8,6)G 10 (10,8) (12,11)G 11 (13,8) (15,8)G 12 (13,8) (11,11)G 13 (13,6) (15,6)H 14 (10,6) (8,6)H 15 (10,6) (12,11)H 16 (10,4) (8,4)H 17 (13,6) (15,6)H 18 (13,6) (11,11)H 19 (13,4) (15,4)I 20 (5,3) (8,4)I 21 (5,3) (8,6)I 22 (5,3) (8,8)I 23 (5,3) (8,9)I 24 (5,3) (7,11)I 25 (5,3) (5,9)J 26 (17,4) (15,4)J 27 (17,5) (15,5)K 28 (18,4) (15,4)K 29 (18,5) (15,5)K 30 (18,5) (15,6)K 31 (18,5) (15,8)K 32 (18,5) (15,9)K 33 (18,5) (16,11)L 34 (18,4) (15,4)L 35 (18,4) (15,6)L 36 (18,4) (15,8)L 37 (18,4) (15,9)L 38 (18,4) (16,11)

tional vertical gridlines and a additional horizontal gridlines aregenerated. Now we are ready to analyze the solution complexity.

The number of cells generated is at most ð3nþ aþ 1Þ2, thereforethe number of sub-rectangles of feasible region is at most3ð3nþ aþ 1Þ2 The number of edges is at most 2að3nþ aÞ. Accord-ingly, the number of edge pairs is bounded by 2a2ð3nþ aÞ2. There-fore the solution complexity of Algorithm 1 in the worst case is12að3nþ aþ 1Þ2ð3nþ aÞ.

In addition, an edge pair will generate at most two ETTLs withina cell because each edge can generate at most one ETTL associatedwith this cell. Consequently, at most 9 corners (candidate place-ments) associated with a sub-rectangle of a cell are under consid-eration in Step 9 of Algorithm 2. As a result, the solutioncomplexity of Algorithm 2 in the worst case is 54ð3n þaþ 1Þ2a2ð3nþ aÞ2. Note that the above analysis does not includethe complexity of finding feasible regions and the complexity offinding the shortest feasible rectilinear paths.

7. Example

This section illustrates our solution methodology with the aid ofan example, depicted in Fig. 14. The EFs, I/O locations, hijs and wisare shown in Fig. 14. The bold lines in Fig. 14 are the existing aisles.The dimensions of the NF and its I/O location can also be obtainedfrom Fig. 14.

Following the grid construction procedure, we draw severalhorizontal and vertical lines (dashed lines in Fig. 14). Suppose thatthe unit construction cost K ¼ 2. First we identify the region for

f1 þ f2 f3 Remark

224þ 338 ¼ 562 4Dominated by case 1Dominated by case 1Dominated by case 1Dominated by case 1

194þ 338 ¼ 532 4 Optimal214þ 338 ¼ 552 4206þ 338 ¼ 544 4

Dominated by cases 8 and 16Dominated by a non-aisle case

226þ 338 ¼ 564 4Dominated by a non-aisle caseDominated by cases 11 and 19Dominated by cases 8 and 16Dominated by case 10

238þ 338 ¼ 576 4Dominated by cases 11 and 19Dominated by case 12

250þ 338 ¼ 588 4Dominated by case 16Dominated by case 9Dominated by case 8

310þ 338 ¼ 648 18Dominated by a non-aisle case

342þ 338 ¼ 680 20Dominated by case 19

246þ 338 ¼ 584 4Dominated by case 26Dominated by case 27Dominated by case 13Dominated by case 11

302þ 338 ¼ 640 14Dominated by a non-aisle caseDominated by case 26Dominated by case 13Dominated by case 11Dominated by case 32Dominated by case 33

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Table 3Results when two sub-aisles are constructed

Cell Case X z1 z2 f1 þ f2 f3 Remark

G 1 (10,8) (8,8) (12,11) 182þ 338 ¼ 520 14G 2 (10,6) (8,6) (12,11) 198þ 338 ¼ 536 18G 3 (10,8) (8,8) (15,8) 152þ 277 ¼ 429 14G 4 (10,6) (8,6) (15,6) 148þ 248 ¼ 396 14G 5 (13,8) (15,8) (11,11) 188þ 338 ¼ 526 14G 6 (13,6) (15,6) (11,11) 200þ 338 ¼ 538 18G 7 (13,8) (15,8) (8,8) 164þ 284 ¼ 429 14G 8 (13,6) (15,6) (8,6) 160þ 248 ¼ 396 14H 9 (10,6) (8,6) (12,11) Dominated by case 2H 10 (10,6) (8,6) (15,6) Dominated by case 4H 11 (10,4) (8,4) (12,11) 214þ 338 ¼ 552 22H 12 (10,4) (8,4) (15,4) 144þ 212 ¼ 356 14 OptimalH 13 (13,6) (15,6) (11,11) Dominated by case 6H 14 (13,4) (15,4) (11,11) 212þ 338 ¼ 550 22H 15 (13,6) (15,6) (8,6) Dominated by case 8H 16 (13,4) (15,4) (8,4) 156þ 212 ¼ 356 14

Fig. 16. Solution for example.

164 M. Zhang et al. / European Journal of Operational Research 197 (2009) 154–165

feasible placements, which is illustrated in Fig. 15. As we can see,the feasible region is divided into a set of rectangular cells. Thereare 12 cells (labeled with ‘‘A” through ‘‘L”) and 18 edges (labeledwith ‘‘a” through ‘‘r”) under consideration. For the case when nosub-aisle is constructed, there are 4 candidate placements andthe corresponding results are shown in Table 1. For the singlesub-aisle case, there are a total of 38 candidate combinations asshown in Table 2. Many of these are dominated due to the estab-lished results. For the two sub-aisles case, the number of candidatecombinations is very large. Only those candidate combinations thatcorrespond to locations in cells G and H are shown in Table 3. Notethat f1 and f2 denote the material handling cost of NF–EF interac-tions and EF–EF interactions, respectively, and f3 accounts for thefixed construction cost of sub-aisles.

Table 4Effect of the number of constructed sub-aisles

# of sub-aisles X z1 z2 f1 þ f2 þ f3

0 (8,11) – – 150þ 338þ 0 ¼ 4881 (3,11) (5,11) – 194þ 338þ 4 ¼ 5362 (10,4) (8,4) (15,4) 144þ 212þ 14 ¼ 370

The optimal placement of the NF and the corresponding sub-aisle(s) construction with respect to the above three cases are illus-trated in Fig. 16. X1;X2 and X3 in Fig. 16 correspond to the optimalplacements, respectively, and the dotted lines are the newly con-structed sub-aisles. The optimal solutions for the three cases arelisted in Table 4 from which we clearly observe that the two newlyconstructed aisles (one from X (10,4) to (8,4) and another one fromX (10,4) to (15,4)) significantly reduces the cost of EF-EF interac-tions from 338 to 212, and therefore this case achieves the mini-mum cost of 370 though accompanied with a higher cost ofconstructing two sub-aisles.

8. Summary and conclusions

The paper has addressed the layout addition problem of placinga rectangular NF in a plane in the presence of other rectangular EFsand an aisle structure. The major distinctive feature of our work isthat we study this problem under the restriction that travel occursonly on aisles. A specific contribution is that we integrate place-ment of the NF and configuration of one or two sub-aisles whichconnect the NF to the existing aisle structure. The motivation for

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M. Zhang et al. / European Journal of Operational Research 197 (2009) 154–165 165

our modeling framework is that material handling is normally re-stricted to aisles.

We show that there are a finite number of candidate locationswhen we need to place the NF directly on to the aisle structure.When locating the NF off the existing aisles, we show that the opti-mal configuration of a sub-aisle has to be a shortest feasible recti-linear path between the location of the NF and the edge to whichthe NF is connected. We also show that there are a finite numberof candidate locations for the NF in the cases of constructing oneor two sub-aisles. We present algorithms for various variations ofthe problem, and study their complexity. Finally, an example ispresented to investigate the impact of the number of sub-aislesadded.

Our conclusions are as follows: the no sub-aisle and single sub-aisle cases can be analyzed using similar tools to that of the p-med-ian problem on a network, and results in the identification of a fi-nite number of candidate placements for the NF and a finitenumber of corresponding sub-aisle configurations. The two sub-aisles case is different because the addition of two sub-aisles canimpact travel distance between the EFs as well. Its analysis is morecomplex, but the basic result of a finite number of candidate loca-tions for the NF and configurations for the sub-aisles remains un-changed. A final conclusion is that adding two sub-aisles resultsin significant benefits.

Acknowledgements

This work gratefully acknowledges support from the NationalScience Foundation, via Grant DMI-0300370. The authors are alsograteful to the efforts of a dedicated referee whose comments havesubstantially improved the exposition of this paper.

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