Multiple-attribute decision making method for plant layout design problem

The layout design problem is a strategic issue and has a significant impact on the efficiency of a manufacturing system. Much of the existing layout design literature that uses a surrogate function for flow distance or for simplified objectives may be entrapped into local optimum; and subsequently lead to a poor layout design due to the multiple-attribute decision making (MADM) nature of a layout design decision. The present study explores the use of MADM approaches in solving a layout design problem. The proposed methodology is illustrated through a practical application from an IC packaging company. Three methods are proposed in solving the case study problem: Technique for Order Preference by Similarity to Ideal solution (TOPSIS), fuzzy max-min and fuzzy TOPSIS. Empirical results showed that the proposed methods are viable approaches in solving a layout design problem. The proposed fuzzy max-min is simplistic yet sensitive to its design factors. TOPSIS is a viable approach for the case study problem and is suitable for precise value performance ratings. When the performance ratings are vague and imprecise, the fuzzy TOPSIS is a preferred solution method.