On a new modelling approach for circular layouts and its practical advantages

We consider a new facility layout problem. The Directed Circular Facility Layout Problem (DCFLP) seeks to optimally arrange machines on a circular layout with given material flow direction. The DCFLP allows for a wide range of applications and contains several other relevant layout problems as special cases. We model the DCFLP as a Linear Ordering Problem and solve it using an Integer Linear Program and a Tabu Search heuristic. In our computational study we show that the DCFLP is easier to solve for both exact and heuristic approaches than other related layout problems.