Economic production quantity model research based on facility layout planning

In this paper, we introduce facility layout design problem into economic production quantity model and address economic quantity model and facility layout design problem simultaneously. With the aim of minimum total cost including set-up cost, holding cost, material handling cost and facility allocation cost, we present the optimal mathematic model based on economic production quantity model and classical quadratic assignment model. Genetic algorithm is applied to solve facility layout cost per part and derive the production quantity formulation with derivate. Simulation example is provided to illustrate the theory, and get results with production quantity and facility location.