| Article ID: | iaor20082852 |
| Country: | Netherlands |
| Volume: | 35 |
| Issue: | 4 |
| Start Page Number: | 485 |
| End Page Number: | 492 |
| Publication Date: | Jul 2007 |
| Journal: | Operations Research Letters |
| Authors: | Smith Robert L., Schochetman Irwin E. |
| Keywords: | maintenance, repair & replacement |
We consider the problem of optimally acquiring and retiring assets that are undergoing technological change over an unbounded horizon. Assuming discounted future per-period acquisition and maintenance costs go to zero, while total discounted costs diverge to infinity, we show that efficient solutions exist and are overtaking optimal.