| Article ID: | iaor20061931 |
| Country: | United Kingdom |
| Volume: | 13 |
| Issue: | 4 |
| Start Page Number: | 261 |
| End Page Number: | 271 |
| Publication Date: | Oct 2002 |
| Journal: | IMA Journal of Management Mathematics (Print) |
| Authors: | Scarf P.A., Hashem M. |
The behaviour of simple replacement decision models is described. We compare and contrast the fixed planning horizon model with the variable planning horizon model, and relate both of these to the classic economic life model. We show that the models are equivalent under certain circumstances. We give recommendations for choosing between these models in practical applications.