Multiple machine replacement analysis

Abstract

Historically, the study of economic equipment replacement is primarily limited to that of a single machining system. The replacement situation whereby the machines under consideration are part of a large integrated system has received little attention. There are two major difficulties in analyzing such a problem: the interactive nature of an integrated system and the combinatorial nature of replacement alternatives. This paper attempts to first view the production system as a network of centers, and then approach the multiple equipment replacement decision as a configuration selection problem. An elaborate example is included.