Modeling Facility Layout Problem in Interactive Situation based on Game Theory

Facility layout is a problem that is related to the location of facilities in a plant. Numerous researches have been done about facility layout because of facility layout variety. Up to now, many models have been presented about facility layout. One of the main problems of these models is not paying enough attention to the external and internal problems of the system. In addition to external competitors, some internal problems of system such as material handling system designing affect layout designs. For considering these effects, some researchers have provided multi-objective approaches that in most cases lead to the optimization of a linear combination of objective functions. The provided multi-objective approaches have not enough efficiency, because of the difficulty of normalizing these functions and quantifying the weights. On the condition that external competitor behavior and participating different sections in internal problems decision-making effect on facility layout, the above models seems unrealistic.In this paper, a game model is proposed that make possible designing facility layout in duopoly monopolized markets through considering the designer's decisions effects. Finally, through an example, the proposed game model is compared with the existing models. This example shows using the linear combination of cost functions in the case of decisions are made by a team, is not necessarily cause improvement in executing manufacturing system. In this situation, game theory can be a suitable instrument in order to make equilibrium strategies between two groups with conflict interests.