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Purpose

The facility layout problem aims to assign machines/departments to locations and modeled as a quadratic assignment problem (QAP). Multi period facility layout is a special case of this problem where the sum of material handling and re‐layout costs are minimized. Since the problem is proved to be NP‐hard, several exact and heuristic methods are proposed in the literature. The purpose of this paper is to solve the multi period layout problem by using the modified sub‐gradient (MSG) algorithm for the first time and to determine its parameters.

Design/methodology/approach

The MSG algorithm can solve a large‐scale of optimization problems that also includes multi period facility layout. Since the performance of the algorithm depends on parameters, a design of experiment is made to determine the appropriate parameter values.

Findings

The proposed method evaluates the parameters of the MSG algorithm and most suitable general algebraic modeling solvers. It is observed that the parameter α value and solver type have main effects for small and large size test problems. Further, the results stated that solver type has more influence on large size test problem.

Research limitations/implications

This study is limited with the determination of the MSG algorithm parameters and solver types on the well known small and large size test problems. Further studies may include other test problem results obtained from the presented MSG algorithm parameters and compare them with best known results in the literature.

Originality/value

The paper determines the parameters of the MSG algorithm that is used to solve the multi period layout problem, for the first time in the literature.

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