In this paper, we study the configuration of machine cells in the presence
of alternative routings for part types. The objective function is the minim
ization of transportation costs. Limits on cell sizes as well as separation
constraints (i.e. machines that are not allowed to be placed in the same c
ell) and co-location constraints (i.e. machines that must be placed in the
same cell) may be imposed. An efficient Tabu Search (TS) algorithm is propo
sed to solve this problem. Extensive computational experiences with large-s
ize problems show that this method outperforms some existing Simulated Anne
aling (SA) approaches. (C) 2001 Elsevier Science Ltd. All rights reserved.