Cost Optimization Model for Plant Assignment in Industrial Estate Planning

Abstract

Many countries, including Thailand, have recently supported and promoted the establishment of economic zones to encourage economic growth in various industries. Key factors for determining the locations of industrial plants in an industrial estate are related to total investment cost, which pertains to land, building, energy, and facilities that are built into the system. However, existing studies are scarce, therefore in this study, we develop a model for determining the plant-layout assignment in an exemplified industrial estate. The single-objective Mixed Integer Linear Optimization Programming (MILP) approach isused to evaluate cost minimization under a number of confining requirements. The model is verified through the demonstrated case study using an area of the industrial estate by classifying the factory types into 4 categories, which are 1) toxic-related industry, 2) general industry, 3) warehouse, and 4) office center (i.e. safe zone). The initial results illustrate that industrial plants in an industrial estate that are found close to the office zone with respect to the desired cost minimization.