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Fleet replacement under technological shocks

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  • Natali Hritonenko
  • Yuri Yatsenko

Abstract

The paper analyzes a fleet replacement problem under general assumptions about technological improvement. The corresponding optimization model considers the variable lifetime of assets in deterministic infinite-horizon settings. The optimal dynamics of the asset lifetime and investment is investigated analytically and numerically under continuous technological change and technological shocks that affect the operating and new asset costs. The obtained results contribute to the OR replacement theory and suggest simple rules for the efficient fleet replacement under improving technology. Copyright Springer Science+Business Media, LLC 2012

Suggested Citation

  • Natali Hritonenko & Yuri Yatsenko, 2012. "Fleet replacement under technological shocks," Annals of Operations Research, Springer, vol. 196(1), pages 311-331, July.
    • Handle: RePEc:spr:annopr:v:196:y:2012:i:1:p:311-331:10.1007/s10479-012-1076-7
    DOI: 10.1007/s10479-012-1076-7
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    References listed on IDEAS

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    Cited by:

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    3. Mellal, Mohamed Arezki, 2020. "Obsolescence – A review of the literature," Technology in Society, Elsevier, vol. 63(C).

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