Title
Fleet replacement under technological shocks
Document Type
Article
Publication Date
7-1-2012
Abstract
The paper analyzes a fleet replacement problem under general assumptions about technological improvement. The corresponding optimization model considers the variable lifetime of assets in deterministic infinite-horizon settings. The optimal dynamics of the asset lifetime and investment is investigated analytically and numerically under continuous technological change and technological shocks that affect the operating and new asset costs. The obtained results contribute to the OR replacement theory and suggest simple rules for the efficient fleet replacement under improving technology. © 2012 Springer Science+Business Media, LLC.
Recommended Citation
Hritonenko, N., & Yatsenko, Y. (2012). Fleet replacement under technological shocks. Retrieved from https://digitalcommons.pvamu.edu/mathematics-facpubs/47