The study developed a Mix Integer Programming model to find an optimal layout solution when the material handling device is considered in corresponding to the material flows. Due to the high complexity of the model, a sub-model called Allocation Model is proposed to provide the feasibility condition of the two-stage model. This result can provide the manager a minimum cost layout in an effective way. The recommended Spine Bay Layout can be used flexibly based on different conditions in the factory with area requirement, dimension or production line.

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