ABSTRACT
There has been some debate over the characterization of the layout and location problems as design and optimization problems. Simon (1975) suggests that the layout problem is a design problem but the location problem is an optimization problem. Design problems are those in which there is no well-defi ned optimum solution. A solution is optimal if every other possible solution to the problem is worse or as good in terms of the chosen criteria. Designers are not interested in fi nding the best solution, but rather a satisfying solution. Design problems are often solved by synthesizing component decisions that are selective, cumulative, and tentative (Simon, 1975). Thus, not only are different designers likely to come up with different designs, but the procedures or methods they adopt in arriving at the fi nal design are also signifi cantly different. Our discussion of the commonly used facility design strategies in this chapter will illustrate these differences. Optimization problems, in contrast, have a well-defi ned optimum solution. For such problems-or more precisely, at least for small instances of such problems-well-defi ned solution procedures or techniques that can identify at least one optimum solution are available.
