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Presents a model of the machining system selection process that is focused on capital intensive, complex machining systems that are intended to provide service over a long time horizon. This model was developed based on interviews with both machine tool suppliers and buyers. The systems considered here increasingly face potentially conflicting demands such as: the ability to be quickly and inexpensively upgraded and reconfigured in order to have quick new product change‐over and ramp‐up time; and high product variety at close to mass production costs. This new “reconfigurability” capability increases the importance of the supplier‐buyer relationship after the machining system has been selected. We also remark that the selection process can serve as the basis for internal consensus and team building within the buyer firm and for enhancing supplier base quality.

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