| Article ID: | iaor199463 |
| Country: | United States |
| Volume: | 40 |
| Issue: | 5 |
| Start Page Number: | 677 |
| End Page Number: | 696 |
| Publication Date: | Aug 1993 |
| Journal: | Naval Research Logistics |
| Authors: | Tang Mark G. |
In this article a stochastic version of the Boiteux probelm is solved and analyzed by employing the stochastic optimal control method. The present setup is close to that of Thompson. The focus is to analyze, under the same structure, how different production functions and how the variance in machine deterioration/maintenance affect the present optimal machine maintenance and sale date decisions.