A Model for Selecting Minimum Cost Combinations of Automatic Data Processing Equipment

The practical problem of getting computational work done at the lowest cost subject to certain specifications interests many people. This paper presents a decision model which will enable them to choose, from among the alternatives available, the combination of computing equipment that minimizes computing costs for a given amount and composition of work. This model, together with other considerations, can provide a systematic basis for selecting a machine complex for a data processing installation. The model is useful also in deciding whether to change a machine complex as a result of changes in the workload or the availability of improved equipment. The authors are indebted to Lee M. Day and Burton French of Farm Production Economics Division, Economic Research Service, for helpful suggestions in the preparation of this paper.