Abstract
In this paper a dynamic cell formation problem is presented considering some new and special characteristics. The concept of machine requirement by lucky parts, the parts which are allowed to be produced in a specific period, is combined with the depreciable property of machines. Therefore, purchasing and selling of machines according to their book-value and generating income have been taken into account. This leads to a new vantage characteristic in cell formation where in each period we are only dealing with the types and number of machines required. The new mathematical model is presented and solved by exact and ant colony optimization methods for three problem sizes.
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