An extended multi-objective replacement model for flexible automation investments

A multi-objective replacement model is developed for flexible automation investments, for use in a decision-support-system environment. The model is based on a general mixed integer goal programming (GP) formulation. The objectives of the model are to derive an optimal implementation sequence for new CNC modules and tooling, replacement schedule for current equipment and production plans for transition and later periods in the planning horizon. Several types of flexibility are considered, in addition to tooling costs and standardization issues. The GP model minimizes a weighted function of the deviational variables for direct profitability, as well as other strategic goals of the firm.