In this paper, a mathematical model and a solution algorithm are devel
oped for solving a robot acquisition and cell formation problem (RACFP
). Our model considers purchasing a proper mix of robots and assigning
all given workstations to purchased robots such that each robot cell
satisfies its workstations' resource demands while minimizing the tota
l system (acquisition) cost. Specifically, each robot has two capacity
constraints - available work envelope and effective machine time. RAC
FP is formulated as a multi-type two-dimensional bin packing problem,
a pure 0-1 integer program which is known to be NP-hard. In this paper
, a very efficient (polynomial time bound) heuristic algorithm is deve
loped and implemented. The algorithm consists of two major stages. The
first stage employs an LP-based bounding procedure to produce a tight
solution bound, whereas the second stage repetitively invokes a rando
m search heuristic using a greedy evaluation function. The algorithm i
s tested by solving 450 randomly generated problems based on realistic
parameter values. Computational results show that the heuristic algor
ithm has outperformed algorithms using general optimization techniques
such as Simulated Annealing and Column Generation. All test problems
are solved within an order of magnitude of 10 seconds, with a gap of l
ess than 1% from the optimum. More importantly, over 70% of all soluti
ons are optimal (334 out of 450). The algorithm can be easily modified
for other applications such as file placement for a multi-device stor
age system and job scheduling for a multi-processing system.