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| Author: | Leung, L. C. Tanchoco, J. M. A. |
| Title: | Multiple machine replacement within an integrated system framework. |
| Journal: | Engineering Economist
1987 : WINTER, VOL. 32:2, p. 89-114 |
| Index terms: | CAPITAL INVESTMENT REPLACEMENT COSTS MANUFACTURING |
| Language: | eng |
| Abstract: | Historically, the study of replacement situation where machines considered are part of a large integrated system has received little attention. A framework is proposed for the analysis of multiple machine replacement within an integrated system context. The major difficulty of analyzing such a problem lies in the interactive nature of an integrated system. The more important issues concerning the replacement problem are: 1/ assignment of machinery parts; 2/ machine flexibility; 3/ materials handling; 4/ transportation costs; 5/ new machine layout; 6/ the tradeoff of input substitution. A single-period model is utilized in order to simplify the presentation. A comprehensive example is also provided for illustration. |
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