ABSTRACT

Sequence-based cellular manufacturing Decision making under risk and uncertainty is applied to cellular manufacturing, specifically in the machine cell formation step. The application works with parts demand, which can be either expressed in a probability distribution (probabilistic production volume) or not expressed in probability distribution, where only the different possible values for volume that can occur are known (uncertain production volume). Decision making under risk is used to help the designer select the best cell arrangement in case of probabilistic production volume. Decision making under uncertainty is used to help the designer select the best cell arrangement in case of uncertain production volume. The objective of the design methodology has been to maximize the profit imposed by the resource capacity constraints.