Material handling equipment selection using multi-attribute utility theory and Monte Carlo simulation

Abdulaziz Ahmed, Sarah S. Lam

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Scopus citations

Abstract

The material handling equipment selection process can be classified as a multi-criteria decision making problem because it involves multiple feasible alternatives and conflicting objectives. This paper utilizes multi-attribute utility theory and Monte Carlo simulation to select the most efficient Material Handling Equipment (MHE) for a manufacturing facility. The three main criteria, developed based on a material handling equation that involves a set of questions, are the material to be moved, the attributes of the move, and the means utilized for the move. By decomposing the three main criteria, a hierarchy of the sub-criteria is developed. The multi-attribute utility theory is used to model the decision maker's preferred judgments with consideration to the risk attitude. The utilities for individual attributes are determined and then aggregated using multiplicative utility functions. Monte Carlo simulation is used to capture the uncertainty associated with a single point estimate of the decision maker's preferred judgment, since it is treated as a random variable with a triangular distribution. The proposed approach is implemented in a small pharmaceutical company to select the MHE for the finished product inventory.

Original languageEnglish (US)
Title of host publicationIIE Annual Conference and Expo 2014
PublisherInstitute of Industrial Engineers
Pages3231-3237
Number of pages7
ISBN (Electronic)9780983762430
StatePublished - Jan 1 2014
Externally publishedYes
EventIIE Annual Conference and Expo 2014 - Montreal, Canada
Duration: May 31 2014Jun 3 2014

Publication series

NameIIE Annual Conference and Expo 2014

Conference

ConferenceIIE Annual Conference and Expo 2014
CountryCanada
CityMontreal
Period5/31/146/3/14

Keywords

  • Material handling equipment
  • Multi-attribute utility theory
  • Multi-criteria decision making

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