IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v99y2000i1p351-37210.1023-a1019236203575.html
   My bibliography  Save this article

A Discrete Maintenance and Replacement Model under Technological Breakthrough Expectations

Author

Listed:
  • Abraham Mehrez
  • Gad Rabinowitz
  • Eli Shemesh

Abstract

Two cases of the discrete time finite horizon technology replacement problem are solved. The first deals with two available machines, one in use and a better one that can be purchased to replace it. The second case considers, in addition, a third machine of future technology that will be available at some random future time. The maintenance level of each used machine is chosen for each period in order to economically control performance deterioration. For solving the model, we first derive an optimal preventive maintenance policy by showing that “bang-bang” (i.e., full or non), non-increasing, maintenance efforts are optimal. Employing the optimal maintenance policy, we reformat the problem and conduct a numerical search in order to derive the replacement policy that will maximize the expected net present profit. Numerical examples demonstrate that management may improve profitability by delaying (but not necessarily foregoing) replacement with an available better machine. Copyright Kluwer Academic Publishers 2000

Suggested Citation

  • Abraham Mehrez & Gad Rabinowitz & Eli Shemesh, 2000. "A Discrete Maintenance and Replacement Model under Technological Breakthrough Expectations," Annals of Operations Research, Springer, vol. 99(1), pages 351-372, December.
    • Handle: RePEc:spr:annopr:v:99:y:2000:i:1:p:351-372:10.1023/a:1019236203575
    DOI: 10.1023/A:1019236203575
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1023/A:1019236203575
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1023/A:1019236203575?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. A. Bensoussan & Q. Feng & S. P. Sethi, 2022. "Integrating equipment investment strategy with maintenance operations under uncertain failures," Annals of Operations Research, Springer, vol. 317(2), pages 353-386, October.
    2. Sendstad, Lars Hegnes & Chronopoulos, Michail, 2020. "Sequential investment in renewable energy technologies under policy uncertainty," Energy Policy, Elsevier, vol. 137(C).
    3. Natali Hritonenko & Yuri Yatsenko, 2012. "Fleet replacement under technological shocks," Annals of Operations Research, Springer, vol. 196(1), pages 311-331, July.
    4. Ali Dogramaci & Nelson M. Fraiman, 2004. "Replacement Decisions with Maintenance Under Uncertainty: An Imbedded Optimal Control Model," Operations Research, INFORMS, vol. 52(5), pages 785-794, October.
    5. Öner, K.B. & Kiesmüller, G.P. & van Houtum, G.J., 2015. "On the upgrading policy after the redesign of a component for reliability improvement," European Journal of Operational Research, Elsevier, vol. 244(3), pages 867-880.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:99:y:2000:i:1:p:351-372:10.1023/a:1019236203575. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.