Abstract In this paper, we present a formulation of the
plant layout problem where the objective is to minimize
work-in-process. We show that the choice of layout has a
direct impact on work-in-process accumulation,
manufacturing lead time, achievable throughput rates, and
required material handling capacity. More importantly,
we show that layouts generated using a queueing-based
model can be very different from those obtained using
conventional layout procedures.