A review of literature related to Flexible Manufacturing Systems (FMS) revealed that various decision problems such as selection of optimal grippers, cutting conditions, tool flow, operational control rules, etc. have been addressed. However, adequate importance is not given to the 'selection of machine tools'. Hence, in this paper, an attempt has been made to fill in this research gap. A hypothetical case study is presented in which a decision regarding the purchase of a machine tool is to be made for establishing a FMS. To accomplish the same, a Multi-Criteria Decision-Making (MCDM) model namely, the Elimination and Choice Translating Reality (ELECTRE) is utilized for selecting a suitable machine tool. © 2009 IEEE.