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 acceptable value of
the maximum shape ratio depends on the department function, so different departments can have different maximum shape ratios. If the department shape ratio exceeds the maximum shape ratio then the
shape adjusted distance score is the sum of the normal distance score and the excess of the department shape ratio over the maximum shape ratio multiplied by the shape penalty. Let
be the shape ratio of department i, let 
be the maximum shape ratio of the department, and let 
be the shape penalty, then the total
shape penalty for all departments P that is added to the distance score is equal to
(3.5)
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 is an input parameter set by the user. You can use the Department command from the Edit menu to set the maximum shape ratio of individual departments. You can use the Max. Shape Ratio command of the Edit menu to set the maximum shape ratio of all departments simultaneously.