ABSTRACT

Abstract This chapter examines the importance of stochastic models in the design and analysis of facilities-logistics problems. Much of the discussion is geared towards micro-level facilities-logistics problems, that is, layout and logistical problems within the ‘‘four walls of a facility.’’ We first present a layout reference model, highlight the impact that stochasticity has on layout problems, and then present models that fully and nearly accurately capture the effects of variability in layout and logistical decisions, and present design tools that will enable a facility analyst to design layouts that perform well with respect to deterministic design criteria as well as stochastic operational-performance criteria.