Quadratic assignment problem QAP with adaptable material handling devices

The traditional quadratic assignment problem (QAP) assumes handling costs b etween two facilities are directly proportional to the distance between the m. This linearity assumption is, in general, untrue in actual industrial se ttings due to changing equipment requirements as the distance between facil ities changes. Therefore, this paper presents a model that reflects actual industrial practice in the design of layouts, assignment of departments to sites, and the selection of proper mode of handling between departments in response to the distances between department pairs. The paper discusses how data call be represented to make it easier to develop such a model and sho ws the methodology to solve the model. The paper concludes with an analysis of modelling error as a way to illustrate the cost associated with applyin g the wrong model as seems to be reflected in the traditional applications of the model.