Fleet replacement under technological shocks

Natali Hritonenko () and Yuri Yatsenko

Annals of Operations Research, 2012, vol. 196, issue 1, 331 pages

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. Copyright Springer Science+Business Media, LLC 2012

Keywords: Technological change; Technological breakthrough; Parallel asset replacement; Infinite-horizon optimization; Variable asset lifetime (search for similar items in EconPapers)
Date: 2012
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DOI: 10.1007/s10479-012-1076-7

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