27TH DAAAM INTERNATIONAL SYMPOSIUM ON INTELLIGENT MANUFACTURING AND AUTOMATION DOI: 10.2507/27th.daaam.proceedings.094 FUZZY LOGISTICS MULTICRITERIA DECISION MAKING MODEL FOR FACILITIES LAYOUT Zedina Lavic, Mugdim Pasic, Branko Vucijak & Nedzad Dukic This Publication has to be referred as: Lavic, Z[edina]; Pasic, M[ugdim]; Vucijak, B[ranko] & Dukic, N[edzad] (2016). Fuzzy Logistics Multicriteria Decision Making Model for Facilities Layout, Proceedings of the 27th DAAAM International Symposium, pp.0650-0657, B. Katalinic (Ed.), Published by DAAAM International, ISBN 978-3-902734- 08-2, ISSN 1726-9679, Vienna, Austria DOI: 10.2507/27th.daaam.proceedings.094 Abstract The paper is focused to the facilities layout problem formulated as a problem of fuzzy multicriteria (multi attributive) decision making. The goal is to develop a model for evaluation and selection of solution from Pareto set of solutions (facilities layout alternatives) applying theory for fuzzy sets and fuzzy logic in multicriteria logistics decision. Decision criteria are selected and grouped according to the logistics objectives, meaning levels of logistics decision making (strategic, tactical and operational level). The decision making problem is structured to decision hierarchy and Fuzzy Analytic Hierarchy process is implemented, which by its essence best corresponds to the problem and the context of decision making, so as to the number and type of selected criteria. The new model is created and tested on a concrete example. Keywords: facilities layout; multicriteria decision making; fuzzy analytic hierarchy process; logistics objectives 1. Introduction The problem of optimizing the layout of facilities has been subject of many researches in the last sixty years. Several recent publications, conferences and researches confirmed the importance of the layout of facilities to meet the requirements set by the market and to achieve the goals of the company [1, 2, 3, 4]. The layout of facilities is an important issue not only for production but also for organizations providing services. Since the 1990s, an additional emphasis on this issue came from the strong requirement of the market for mass satisfying of customers in terms of the required product, quantity, variety, place and time of delivery, and this problem is further complicated because of an increase in the degree of uncertainty and ambiguity. Satisfying these demands requires quick reaction and rearrangement of facilities in the shortest possible time and best possible way, in order to reduce costs. The importance of the problem of layout is also reflected by the fact that the costs of material handling, and other costs which depend on the layout, constitute 20- 50% of total operating costs [5]. Requirement to have an efficient process of supply for point of receipt from the point of supply implies the establishment of a logistics system that will allow supply of the right product, in the right condition, at the right time, right place, and at minimum cost. - 0650 -