A network flow model of group technology

It has long been recognized that productivity in manufacturing plants can often be increased by producing similar products in cells. This involves 1. signing parts to individual machines, and orming machines into cells. two activities have traditionally been carried out separately. However, most solution procedures for (i) above utilize a solution to (ii), and vice versa. Here we present a unified approach that deals with (i) and (ii) simultaneously. The approach is based on a multicommodity circulation minimum cost network flow model with side constraints.