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A Concave Cost Stochastic Replacement Problem

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Abstract

In this paper, a multi-machine replacement problem is studied. T(1) represents an existing technology currently in operation; and machine T(2) represents a new technology breakthrough of which introduction time is uncertain. Economies of scale yield age-group based optimal replacement policies. This, in return, provides substantial reduction in the complexity of the problem. Sufficient conditon limit the amount of information needed to determine regenerative type optimal solutions to the infinite horizon problem.

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Authors and Affiliations

  1. Department of Management Science, School of Business Administration and Economics, California State University, Fullerton, CA, USA

    Zvi Goldstein

  2. Department of Industrial Engineering and Management, Ben-Gurion University of the Nagev, Israel

    Abraham Mehrez

Authors
  1. Zvi Goldstein
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  2. Abraham Mehrez
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Goldstein, Z., Mehrez, A. A Concave Cost Stochastic Replacement Problem. OPSEARCH 35, 13–31 (1998). https://doi.org/10.1007/BF03398536

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  • DOI: https://doi.org/10.1007/BF03398536

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