Solution algorithms for the parallel replacement problem under economy of scale

Zhi‐Long Chen

Naval Research Logistics (NRL), 1998, vol. 45, issue 3, 279-295

Abstract: We consider the parallel replacement problem in which machine investment costs exhibit economy of scale which is modeled through associating both fixed and variable costs with machine investment costs. Both finite‐ and infinite‐horizon cases are investigated. Under the three assumptions made in the literature on the problem parameters, we show that the finite‐horizon problem with time‐varying parameters is equivalent to a shortest path problem and hence can be solved very efficiently, and give a very simple and fast algorithm for the infinite‐horizon problem with time‐invariant parameters. For the general finite‐horizon problem without any assumption on the problem parameters, we formulate it as a zero‐one integer program and propose an algorithm for solving it exactly based on Benders' decomposition. Computational results show that this solution algorithm is efficient, i.e., it is capable of solving large scale problems within a reasonable cpu time, and robust, i.e., the number of iterations needed to solve a problem does not increase quickly with the problem size. © 1998 John Wiley & Sons, Inc. Naval Research Logistics 45: 279–295, 1998

Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://doi.org/10.1002/(SICI)1520-6750(199804)45:33.0.CO;2-4

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:navres:v:45:y:1998:i:3:p:279-295

Access Statistics for this article

More articles in Naval Research Logistics (NRL) from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().