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A stochastic machine maintenance and sale problem: Results with different production functions
Author(s) -
Tang Mark G.
Publication year - 1993
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/1520-6750(199308)40:5<677::aid-nav3220400510>3.0.co;2-3
Subject(s) - production (economics) , computer science , focus (optics) , variance (accounting) , mathematical optimization , stochastic control , control (management) , operations research , optimal control , mathematics , artificial intelligence , economics , microeconomics , physics , accounting , optics
In this article we solve and analyze a stochastic version of the Boiteux problem by employing the stochastic optimal control method. Our setup is close to that of Thompson [22]. Our focus is to analyze, under the same structure, how different production functions and how the variance in machine deterioration/maintenance affect our optimal machine maintenance and sale date decisions. © 1993 John Wiley & Sons, Inc.