Abstract
This paper addresses the problem of determining the capacity requirements for a manufacturing system that consists of versatile metal removing machines, each of which may be configured to perform several different operations at varying levels of efficiency and cost. The number of each machine type required and the assignment of each machine type to different processes are determined by minimizing the sum of machine amortization costs and operating costs. Alternative formulations are presented to address non-splitting of a batch and non-splitting of the processing of a part. The formulations are illustrated using numerical examples.
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