Age Replacement with Discounting for a Continuous Maintenance Cost Model
- 1 November 1976
- journal article
- research article
- Published by JSTOR in Technometrics
- Vol. 18 (4) , 459
- https://doi.org/10.2307/1268662
Abstract
The optimal age replacement policy according to the criterion of Fox [5] is obtained for the model, introduced by Scheaffer [7], containing a continuously increasing maintenance cost factor. The new results beyond the generalisation to a new model are mainly in sensitivity analysis. Examples are given where the optimal replacement age increases with the interest rate, as well as examples of the opposite.Keywords
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