Max. Shape Ratio
The maximum shape ratio is the limit value for the shape ratio of a department before it gets penalized in the shape adjusted distance score. The department shape ratio is the maximum of the length to width and width to length ratio of the smallest rectangle that completely encloses the department. For example the shape ratio of a square is one and the shape ratio of a three by one rectangle is equal to three. If a department shape ratio exceeds its maximum shape ratio then it will get penalized. If the department shape ratio exceeds its maximum shape ratio then the shape adjusted distance score is the sum of the flow distance score and the department shape ratio excess over the maximum shape ratio times the Shape Penalty. The term shape factor is also commonly used for shape ratio. The acceptable value of the maximum shape ratio depends on the department function, so different departments can have different maximum shape ratios. Only the block exchange algorithms use the maximum shape ratio to penalize block layouts to avoid excessively narrowly shaped departments.
The maximum shape ratio can also be set for all departments simultaneously with the Max. Shape Ratio command of the Edit menu.
Shape Penalty
The Shape Penalty is the factor by which the excess of the department's shape ratio over the Max. Shape Ratio gets multiplied if it exceeds the maximum ratio and this product gets added to the shape adjusted distance score to avoid long narrow departments. A higher shape penalty will tend to make departments more like squares. A low or zero shape penalty will allow more long and narrow departments. The shape penalty cannot be negative.
If the shape ratio of a department violates the maximum allowable shape ratio, then a penalty will be added to the flow distance score of the layout. Let 
be the shape ratio of
department i, and let 
be the maximum shape ratio and let 
be the shape penalty, then the total shape penalty for all departments P that is added
to the flow distance score is equal to
(5.2)
The shape penalty can also be set for all departments simultaneously with the Shape Penalty command of the Edit menu.