Exploiting travel sequences to optimise facility layouts with multiple input/output points

The facility layout problem (FLP) involves arranging departments on a shop floor to optimise specific objectives, traditionally focussing on pairwise flows between departments. However, these methods often underestimate total travel distances, especially when flows involve multiple input/output points and visits to more than two departments. To address this, connected movements – actual routes taken by transporters – must be considered. This study uses data captured from an Internet of Things (IoT) network and stored on cloud servers to analyze worker movements and accurately calculate travel distances. A mixed-integer programming model is proposed to minimise total travel distance using connected movements as input. Due to the problem's complexity, a biased random key genetic algorithm is employed to find optimal layouts. A case study at a fertiliser production company demonstrates the effectiveness of the approach, achieving a 15% reduction in travel distance compared to layouts generated by traditional methods. The IoT-enabled method also minimises productivity losses by optimising worker movements. While the study focuses on fertiliser manufacturing, the findings are applicable to other settings, such as warehousing, where complex movement sequences and multiple IO points are common in processes like picking, packing, and shipping.