A hybrid approach to machine-tool selection through the analytic hierarchy process and simulation

The selection process of a machine tool has been a critical issue for companies for years, because the improper selection of a machine tool might cause many problems having a negative effect on productivity, precision, flexibility, and a company’s responsive manufacturing capabilities. Therefore, in this paper, to determine the best machine tool satisfying the needs and expectations of a manufacturing organization among a set of possible alternatives in the market, a hybrid approach is proposed, which integrates an analytic hierarchy process (AHP) with simulation techniques. The AHP as one of the most commonly used multiple criteria decision-making methods is used to narrow down all possible machine tool alternatives in the market by eliminating those whose scores (or weights) are smaller than a determined value obtained under certain circumstances. Then, a simulation generator is used first to automatically model a manufacturing organization, where the ultimate machine tool will be used, and second to try each alternative remaining from the AHP as a scenario on the generated model. Finally, the final alternative is selected by using the unit investment cost ratio, which is calculated by dividing the investment cost per year of each alternative by the additional number of produced units obtained from the simulation experiment of the relevant alternative.