| Article ID: | iaor19941364 |
| Country: | United States |
| Volume: | 41 |
| Issue: | 1 |
| Start Page Number: | 117 |
| End Page Number: | 128 |
| Publication Date: | Feb 1994 |
| Journal: | Naval Research Logistics |
| Authors: | Smith Robert L., Bean James C., Lohmann Jach R. |
For infinite-horizon replacement economy problems it is common practice to truncate the problem at some finite horizon. The authors develop bounds on the error due to such a truncation. These bounds differ from previous results in that they include both revenues and costs. Bounds are illustrated through a numerical example from a real case in vehicle replacement.