Optimization of the lifetime of capital equipment using integral models

Yuri Yatsenko; Natali Hritonenko

doi:10.3934/jimo.2005.1.415

Article Contents

2005, Volume 1, Issue 4: 415-432. Doi: 10.3934/jimo.2005.1.415

This issue Previous Article Next Article Empirical studies on internationally diversified investment using a stock-bond integrated model

Optimization of the lifetime of capital equipment using integral models

Yuri Yatsenko^1, and
Natali Hritonenko^2,

1.
College of Business and Economics, Houston Baptist University, 7502 Fondren Road, Houston, TX 77074-3298
2.
Department of Mathematics, Prairie View A{\&}M University, P.O. Box 4189, Prairie View, TX 77446-4189

Received: February 2005

Revised: September 2005

Published: October 2005

Abstract Related Papers Cited by

Abstract

In Operations Research, the equipment replacement process is usually modeled as a discrete sequential decision problem. The alternative approach is developed in vintage capital models, which explicitly involve the lifetime of capital equipment and are described by the integral equations of a special type. The paper exposes a general investigation framework for the optimal control of the integral models with endogenous lags, which is applied to meaningful one- and two-sector vintage models. The analysis leads to nontrivial results such as turnpike properties of the optimal equipment lifetime and corresponding management strategies of equipment replacement.

Keywords:

Mathematics Subject Classification: Primary: 45D05, 91B62; Secondary: 49J25.

Citation:

Article Metrics

HTML views() PDF downloads(185) Cited by(0)

Optimization of the lifetime of capital equipment using integral models

Abstract

Access History

Article Metrics

Access History

Other Articles By Authors

Catalog

Optimization of the lifetime of capital equipment using integral models

Abstract

Access History

SHARE

Article Metrics

Access History

Other Articles By Authors

Catalog

Export File

Citation

Format

Content