Simulation based optimization of resource allocation and facility layout for vegetable grafting operations

Abstract Optimal facility layout planning is needed for building or retrofitting production facilities (industrial or agricultural) in order to maximize production capacity and efficiency. In labor-intensive agricultural plant production facilities, this process is especially complicated due to the uncertainties surrounding the dynamicity of workers’ performance and plant growth affected by climate conditions. In this work, a simulation-based optimization framework is developed to simultaneously find the optimal facility layout design and resource allocation applicable for vegetable grafting nurseries that involve highly labor-intensive young plant production with multiple operational stages. In particular, optimal layout algorithms are embedded within the simulation model in order to find an optimal layout design given available resources. The proposed model can be customized based on workers’ individual performance and managerial design preferences. When applied to a case study of designing a new greenhouse nursery, results reveal that our proposed framework can lead to a potential daily savings of 20.64% or $1421.44 on average in terms of labor, utility, and amortized costs.