The minimum-cost, machine-part cell formation problem

This paper argues that it is essential to consider explicitly the main elements of manufacturing costs in designing cellular manufacturing systems. Consequently, a mixed linear program is introduced to help solve the cell formation problem where the objective is to minimise the sum of these cost elements. A method to determine its optimal solution is proposed as well as an adaptation of the simulated annealing algorithm designed to achieve good approximate solutions. Finally, a quick assessment of the performance of this simulated annealing adaptation is provided.