The asset replacement problem state of the art

Abstract

This book chapter outlines the different modelling approaches for realising sustainable operations of asset replacement and studying the impact of the economic life, the repair-cost limit and comprehensive cost minimisation models. In particular it analyses in detail the parallel replacement models and suggests a new model that addresses some of the issues not yet solved in this area. Finally a discussion about the limitations of the current models from a theoretical and applied perspective is proposed and identifies some of the challenges still faced by academics and practitioners working on this topic.