Geometric programming (GP) is suggested as an analytical tool for solving a certain class of replacement problems with an infinite time horizon. The GP solution method is described and explained through the formulation and solution of a typical replacement problem. A numerical example is presented to illustrate how the theories of GP are applied for the analysis of replacement decisions of equipment due to age and wear. We also discuss the aspect of sensitivity analysis based on the GP approach.
ASJC Scopus subject areas
- Strategy and Management
- Management Science and Operations Research
- Industrial and Manufacturing Engineering