Production layout optimization for operational cost reduction: A case study at Dai Hoang Nguyen Manufacturing Trading Service Co., Ltd.
Published: July 20, 2026
doi:10.62831/nckh.2026.589.v1
Abstract
In an increasingly competitive environment, operational cost management is a critical factor for manufacturing enterprises. Internal material handling costs account for 20–50% of total production costs, making layout optimization an important managerial tool. This study was conducted at Dai Hoang Nguyen Manufacturing Trading Service Co., Ltd. to address inefficiencies caused by suboptimal facility layout. The Systematic Layout Planning (SLP) method was combined with four algorithms: Add-node, CRAFT, ALDEP, and CORELAP. The results indicate that the CRAFT algorithm delivers the highest economic efficiency, reducing travel distance by 46.36%, saving 17.92 minutes in processing time and 11,060.06 VND per production cycle. With an estimated renovation cost of 83.285 million VND and annual benefits of nearly 120 million VND, the payback period is under 12 months, demonstrating strong feasibility and financial effectiveness.
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