Article ID: | iaor19911427 |
Country: | Netherlands |
Volume: | 20 |
Issue: | 3 |
Start Page Number: | 265 |
End Page Number: | 275 |
Publication Date: | Dec 1990 |
Journal: | Engineering Costs and Production Economics |
Authors: | Tanchoco J.M.A., Leung Lawrence C. |
Keywords: | replacement |
Historically, the study of economic equipment replacement is primarily limited to that of a single machining system. The replacement situation whereby the machines under consideration are part of a large integrated system has received little attention. There are two major difficulties in analyzing such a problem: the interactive nature of an integrated system and the combinatorial nature of replacement alternatives. This paper attempts to first view the production system as a network of centers, and then approach the multiple equipment replacement decision as a configuration selection problem. An elaborate example is included.