A mathematical modeling approach for integrating product mix and dynamic facility layout decisions

The main aim of developing industrial enterprises is to maintain and to grow their current market position.This necessitates offering service in accordance with consumers' preferences while also generating quickly and at a low cost. Manufacturing companies' most significant expenditures are incorrect product selection, production quantity, production order, and transportation charges. In this situation, facility layout and product mix are critical challenges that corporations must address in order to maintain profitability. In this study, it was attempted to minimize the flow time between the machines, raise the profit rate, and supply production flow with the most suited product selection by creating a dynamic facility layout with equal areas with the real industry application. In addition, with the maximization of the income obtained, it has been tried to minimize all the costs arising from the production, layout and inventory in the planning horizon. The proposed method is modeled using mixed integer programming and put to the test using a time study with a real-world application. The results suggest that the proposed paradigm is effective in solving real-world problems. As a result, it has been discovered that the product mix problem, in conjunction with the facility layout decision, results in the most appropriate material flow by constructing several plant layouts.