Discrete-continuous analysis of optimal equipment replacement

Discrete-continuous analysis of optimal equipment replacement

In Operations Research, the equipment replacement process is usually modeled in discrete time. The optimal replacement strategies are found from discrete (or integer) programming problems, well known for their analytic and computational complexity. An alternative approach is represented by continuous-time vintage capital models that explicitly involve the equipment lifetime and are described by...

Optimal Equipment Replacement and Scrapping Under Improving Technology

The Equipment-Replacement Problem

To illustrate these assumptions, let us consider a simple numerical example. Suppose a car is needed for three years; that is, suppose N = 3. At the beginning of the first year, we have a 2-year-old car. The annual cost of operating a car is a function of its age; and this cost function is given by: c(0) = 10, c(1) = 20, c(2) = 40, c(3) = 60, and c(4) = 70. The fact that these costs are increas...

Discrete Wave-analysis of Continuous Stochastic Processes" Discrete Wave-analysis of Continuous Stochastic Processes

1. Introduction. In the theory of stationary stochastic processes, much effort

Equipment replacement: an integration view

Equipment replacement: an integration view " (1989). Retrospective Theses and Dissertations. Paper 9221. The most advanced technology has been used to photo­ graph and reproduce this manuscript from the microfilm master. UMI films the text directly from the original or copy submitted. Thus, some thesis and dissertation copies are in typewriter face, while others may be from any type of computer...