A Mixed Optimization Technique for the Generalized Machine Replacement Problem.
CARNEGIE-MELLON UNIV PITTSBURGH PA MANAGEMENT SCIENCES RESEARCH GROUP
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A mixed optimization technique for optimal machine replacement is presented which allows much more flexibility than previous models. Optimal purchase, maintenance, and sale of a given machine between any two given points in time is treated as a sub-problem, which one may choose to solve via control theory, dynamic programming, or practical engineering considerations. A control theory formulation is used in the paper as an illustration. These sub-problem solutions are then incorporated into a Wagner-Whitin formulation for solution of the full problem. The technique is particularly useful for problems with such asymmetries as an existing initial machine or uneven technological change. Author
- Operations Research
- Machinery and Tools