WORK-IN-PROCESS SPACE ALLOCATION - A MODEL AND AN INDUSTRIAL APPLICATION

This paper presents a model for allocating storage space to inventory in a way that minimizes the cost of material handling. The space allocation problem is modeled as a generalized transportation problem; however, transporting material within the facility is the focus. The basic formulation of the model considers material type, material flow transitions, and distance transported. The model is extended to determine production levels for multiple products such that additional material handling costs (i.e., load/unload times) are minimized. Applications of the just-in-time (JIT) concept and material handling in the job shop environment are discussed. Finally, an industrial case study is presented.