| Article ID: | iaor199998 |
| Country: | India |
| Volume: | 35 |
| Issue: | 1 |
| Start Page Number: | 13 |
| End Page Number: | 31 |
| Publication Date: | Mar 1998 |
| Journal: | OPSEARCH |
| Authors: | Mehrez Abraham, Goldstein Zvi |
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, provided substantial reduction in the complexity of the problem. Sufficient conditions limit the amount of information needed to determine regenerative type optimal solutions to the infinite horizon problem.