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Greater Possibility of Space Utilization
There will be a greater productive utilization of the floor area under this type of layout. Due to lesser need for temporary storage of materials and use due to automatic material handling arrangement. The vast floor area is not jam packed with tools materials, work in process etc. The aisles or passage spaces will be kept to the minimum. The concentration of manufacturing activities and facilities at one place in continuous sequence and the higher output planned under the layout would result in a smaller floor area per planned under the layout would result in a smaller floor area per unit of product, thus making the total floor area more productive.
what is the principle of discounting and what issues are critical in this process
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