In this work, a systematic methodology to construct distributed layouts has been developed. Previous researches in this field suggest distributed layouts as an alternative to process layouts. But there has been no systematic methodology so far to develop distributed layouts. Earlier works concentrate on evaluating different production schedules for randomly distributed resources throughout the plant floor. As opposed to former approaches, in this work, distributed layouts are developed based on actual production and routing data. Taking into account the exact capacity requirements of machines, a methodical approach to distribute resources rather than random assignment is considered. The need for developing process layouts is analyzed and justified using product similarity and cell utilization. Process layouts are developed only when the given production data meets process layout requirements. The efficiency of proposed approach relative to traditional process layout strategy has been evaluated in terms of material handling cost for both single and multi period settings. In a multi period setting, the impact of demand disturbances on both process and distributed layouts is studied using case studies. From the case study results, it is concluded that distributed layouts constructed using proposed approach performs exceedingly well over traditional process layout approach. Distributed layouts proved to be efficient and robust for both single and multi-period cases. Even huge fluctuations in demand level of products had only little impact on distributed layouts whereas process layouts suffered tremendous loss in terms of material handling cost. It turned out that for all cases, the improvement in efficiency of distributed layouts was more than 30% over process layouts. / Thesis (M.S.)--Wichita State University, College of Engineering, Dept. of Industrial and Manufacturing Engineering.