𝔖 Bobbio Scriptorium
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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

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✦ 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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