Multiple-attribute decision making methods 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. Two methods are proposed in solving the case study problem: Technique for order preference by similarity to ideal solution (TOPSIS) and fuzzy TOPSIS. Empirical results showed that the proposed methods are viable approaches in solving a layout design problem. 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.