The Asset Replacement Problem: State of the Art

In this book chapter we summarize how the asset replacement problem has evolved over time. We provide a broad view of different modeling approaches, including the economic life, the repair cost limit, comprehensive cost minimization models, and we analyze in detail the parallel replacement models. W...

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Bibliographic Details
Main Authors: Ansaripoor, Amir Hossein, Oliveira, F., Liret, A.
Other Authors: Gilbert Owusu
Format: Book Chapter
Published: Springer Heidelberg New York Dordrecht London 2013
Online Access:http://hdl.handle.net/20.500.11937/40999
Description
Summary:In this book chapter we summarize how the asset replacement problem has evolved over time. We provide a broad view of different modeling approaches, including the economic life, the repair cost limit, comprehensive cost minimization models, and we analyze in detail the parallel replacement models. We suggest a new model for parallel replacement that addresses some of the issues not yet solved in this area. Finally, we discuss the limitations of the current models from a theoretical and applied perspective and identify some of the challenges still faced by academics and practitioners working on this topic