ORIGINAL ARTICLE An integrated fuzzy algorithm approach to factory floor design incorporating environmental quality and health impact Ali Azadeh • Sahar Jebreili • Elizabeth Chang • Morteza Saberi • Omar Khadeer Hussain Received: 10 September 2014 Ó The Society for Reliability Engineering, Quality and Operations Management (SREQOM), India and The Division of Operation and Maintenance, Lulea University of Technology, Sweden 2014 Abstract This paper presents an integrated algorithm based on fuzzy simulation, fuzzy linear programming (FLP), and fuzzy data envelopment analysis (FDEA) to cope with a special case of workshop facility layout design problem with ambiguous environmental and health indi- cators. First a software package is used for generating feasible layout alternatives and then quantitative perfor- mance indicators are calculated. Weights are estimated by LP for pairwise comparisons (by linguistic terms) in evaluating certain qualitative performance indicators. Fuzzy simulation is then employed for modeling different layout alternatives with uncertain parameters. Next, the impacts of environment and health indicators are retrieved from a standard questionnaire. Finally, FDEA is used for ranking the alternatives and consequently finding the optimal layout design alternatives. A possibilistic pro- gramming approach is used to modify the fuzzy DEA model to an equivalent crisp one. Moreover, fuzzy princi- pal component analysis method is used to validate the results of FDEA model at various a-cut levels by Spearman correlation experiment. This is the first study that presents an integrated algorithm for optimization of facility layout with environmental and health indicators. Keywords Facilities planning and design  Data envelopment analysis  Fuzzy sets  Simulation optimization  Environment  Health 1 Introduction Facility layout means planning for the location of all machines, utilities, employee workstations, customer ser- vice areas, material storage areas, aisles, restrooms, lunchrooms, internal walls, offices, and computer rooms. It is also a planning for the flow patterns of materials and people around, into, and within buildings (Tompkins et al. 1996). Layout Optimization is one of the top issues for industrial facility planners in around the world. It has profound effects on organizational productivity and prof- itability. Optimal layouts reduce materials handling costs, help streamline all operations in a facility, and reduce energy bills. Selection of a useful, effective and manage- able layout is the key in achieving the success of a par- ticular manufacturing organization. Facility layout design is usually considered as a multi- ple-objective problem. According to Heragu et al. (1990) in the Facility layout design problems, minimizing material handling costs and providing a safe workplace for employees are the most important objectives. In summary, the most common objectives in facility layout design (FLD) problem can be summarized as follow: • Minimize the material handling costs, minimize overall production time, and minimize investment in equip- ment between the facilities (Yaman et al. 1999). • Facilitate the traffic flow and minimize the costs of it (Heragu 1997). A. Azadeh  S. Jebreili School of Industrial and Systems Engineering, College of Engineering, University of Tehran, Tehran, Iran E. Chang  M. Saberi (&)  O. K. Hussain School of Business, UNSW Canberra, Canberra, Australia e-mail: m.saberi.ie@gmail.com M. Saberi Department of Industrial Engineering, University of Tafresh, Tafresh, Iran 123 Int J Syst Assur Eng Manag DOI 10.1007/s13198-014-0314-6