| Article ID: | iaor19911002 |
| Country: | Netherlands |
| Volume: | 9 |
| Issue: | 5 |
| Start Page Number: | 325 |
| End Page Number: | 333 |
| Publication Date: | Sep 1990 |
| Journal: | Operations Research Letters |
| Authors: | Jones Philip C., Zydiak James L., Hopp Wallance J. |
| Keywords: | depreciation |
This paper presents an equipment replacement model for a profit maximizing firm facing a downward sloping demand curve and establishes two main results. First, decisions on production levels and equipment replacement are independent. Second, there exists a depreciation schedule that is stable in the sense that neither firm nor government can argue for changes on purely economic grounds.