Replacement decision based on productivity analysis— an alternative to the MAPI method
✍ Scribed by Lawrence C. Leung; Jose M.A. Tanchoco
- Book ID
- 104324001
- Publisher
- Society of Manufacturing Engineers
- Year
- 1983
- Tongue
- English
- Weight
- 1011 KB
- Volume
- 2
- Category
- Article
- ISSN
- 0278-6125
No coin nor oath required. For personal study only.
✦ Synopsis
The paper presents an alternative replacement approach to Terborgh's MAPI procedure. Presented in the format of a case study, this illustrative example incorporates considerations on different machine types, factors of production, expansion of output, finite planning horizon, and the 1983 Accelerated Cost Recovery System (ACRS) depreciation schedule along with other factors traditionally considered. A solution procedure is also provided to determine the optimal replacement policy; the criterion is the maximization of the production process' future worth at the end of the planning horizon. A general literature review is included.
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