ABSTRACT
The optimisation analysis of manufacturing has been studied since W. W. Gilbert's first work on the economics of machining. He introduced the 'maximum production rate' and the 'minimum production cost' criteria, under which optimal machining speeds were analysed by developing mathematical models for single-stage manufacturing. In 1964 a new criterion for manufacturing- the 'maximum profit' in a limited time interval- was proposed; the optimal machining speed was derived under this criterion by break-even analysis and by marginal analysis. Since 1966, this third criterion has been named the 'maximum profit rate'. The term 'profit rate' usually means return on investment in the field of economics and engineering economy. Ideally, optimisation should be applied to a total manufacturing system such as material fabrication - part machining- product assembly. Optimisation analysis of single-stage manufacturing is the fundamental of optimisation of integrated manufacturing systems.
