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This paper presents a model for calculating the optimal cutting feed rate and spindle speed in a stand-alone cutting machine. The optimal cutting conditions are determined for three different objective functions--minimum expected cycle time, minimum expected cost per unit, and maximum expected profit-rate--under the failure replacement strategy, taking into account cutting tool constraints and machine limitations. We also examine the relationships between the optimal solutions, and present the efficiency range of feed rate. Keywords: Machining economics; Tool life; Failure replacement