Tool reliability plays an important role in the performance cmd justificati
on of flexible manufacturing systems (FMS). Failure of a single tool can ca
use downtimes over the Entire system. This results in missing due dates, an
d inferior products. Therefore, in order to justify the large capital inves
tment associated with FMS, the system must perform in a reliable manner to
give an acceptable or expected rate of return on capital. FMS reliability s
hould be studied at the planning and design stages, as tool failures pose a
major obstacle to achieving this objective. In this paper, a mathematical
model has been developed to determine the spares requirement of the tooling
system in an FMS, so that the desired system reliability is achieved and t
he cost is minimised. The influence of tool sharing on cost, reliability, s
pares requirement, and tool magazine capacity of the FMS are analysed. The
tools and tool transporter are subject to general failure distributions.