Abstract
Abstract This paper is concerned with the problem of determining the optimum number of machines to have in a production process. The problem is analyzed as a resource allocation problem involving the minimum cost allocation of limited floor space, capital budget, and available overtime among various types of machines. The dynamic nature of the problem is also included in the analysis. A deterministic mixed integer programming model is described. A numerical example is presented to illustrate the approach and its utility as an alternative way to address the machine requirements problem.
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