Replacement under ongoing technological progress
Loading...
Authors
Regnier, Eva D.
Sharp, Gunter
Tovey, Craig
Subjects
Advisors
Date of Issue
2004
Date
Publisher
Institute of Industrial Engineers
Language
Abstract
This paper evaluates the cost savings achievable in the infinite horizon single-asset replacement problem by considering technological progress affecting assets available after multiple future replacements and allowing variable service lives. Using a simple geometric model to specify asset costs, constant service lives are shown to be suboptimal. It is shown by example that common replacement decision methods yield higher service lives for the first asset and substantially different discounted total costs for the series of assets. This effect is illustrated numerically using automobile cost data.
Type
Article
Description
The article of record as published may be found at https://doi.org/10.1080/07408170490438401
Series/Report No
Department
Organization
Identifiers
NPS Report Number
Sponsors
Funding
Format
12 p.
Citation
Regnier, Eva, Gunter Sharp, and Craig Tovey. "Replacement under ongoing technological progress." IIE transactions 36.6 (2004): 497-508.
Distribution Statement
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.