A general procedure for incorporating asset utilization decisions into replacement analysis.: An article from: Engineering Economist

This digital document is an article from Engineering Economist, published by Institute of Industrial Engineers, Inc. (IIE) on September 22, 1999. The length of the article is 6589 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the author: Replacement analysis has generally been treated as a tactical decision. However, the economic life of an asset is dependent on its utilization, which is an operational decision. Traditional replacement models assume fixed levels of asset utilization to determine minimum cost replacement schedules, preventing analysis of different utilization/replacement scenarios that may lead to lower overall cost solutions. This problem arises when a multitude of assets may be utilized to achieve a required service level. A model is presented that simultaneously determines tactical (replacement) and operational (utilization) decisions in a general and flexible manner.

Citation Details
Title: A general procedure for incorporating asset utilization decisions into replacement analysis.
Author: Joseph C. Hartman
Publication:Engineering Economist (Refereed)
Date: September 22, 1999
Publisher: Institute of Industrial Engineers, Inc. (IIE)
Volume: 44 Issue: 3 Page: 217(2)

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