| Summary: | The emerging of simulation and optimization approaches achieves a rapid growth in recent years. In this paper, the new concept of simulation optimization is applied to solve machining economic problem with stochastic tool life for turning operations. The developed simulation optimization model determines the optimal values of process parameters and tool replacement interval with practical constraints when the objective is to minimize the total production cost or total production time per workpiece taking into consideration the maintenance and quality costs. In practice, stochastic models of machining systems are more applicable than deterministic models due to the probabilistic nature of tool life. The developed model is validated and demonstrated using numerical examples. Extensive sensitivity analysis is provided to consider the effect of model inputs on the optimal results. Keywords: Machining Economic, OptQuest, Simulation Optimization, Stochastic tool life, Scatter Search, Arena
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