The rational replacement management of hi-tech equipment is an important problem of technology management. This paper analyzes and compares two alternative policies for determining the service life and replacement demand of industrial equipment under improving technology. These policies lead to different estimates of the impact of new technology on the replacement policies and equipment service life.
Bitros, George C.; Hritonenko, Natali; and Yatsenko, Yuri
"Optimal Equipment Replacement and Scrapping Under Improving Technology,"
Journal of International Technology and Information Management: Vol. 19
, Article 5.
Available at: http://scholarworks.lib.csusb.edu/jitim/vol19/iss4/5