Here facilities such as factories and warehouses are studied. The following questions have to be answered. What is the optimal location of a facility? Where do we position the departments inside the facility and how much floor space do they need? What and how much equipment (machines) must be selected?
Systematic Layout Planning is a procedure to find a feasible facility layout. Inside this procedure several algorithms and heuristics may be adopted.
Material handling deals with the transportation and storage of raw materials, parts and products inside the facility. Types of equipment involved are: forklift trucks, conveyors, AGVs, storage buffers, etcetera. The design of a material handling system implies: design of the track layout, determining the number of vehicles and selecting the way of control.