Flexible automation investments: A synthesis of two multi-objective modeling approaches

In this paper, an economic evaluation methodology based on the synthesis of two multi-objective modeling approaches is presented for flexible automation investments. The procedure combines a general mixed integer goal programming (GP) formulation with the analytic hierarchy process (AHP) to utilize both optimization and evaluation capabilities. The problem involves deriving the optimal implementation sequence for new, CNC modules and tooling, replacement schedule for current equipment, as well as production plans for transition and later periods in the planning horizon. Several types of flexibility are considered in the model, which attempts to meet several, conflicting financial and strategic goals of the firm.