What is replacement theory
- 1. Replacement Theory SUBMITTED TO:- SUBMITTED BY:- Mr. Sachin mahendru Krishna kr. Thakur Roll- 75134014 B.tech (ME) 8th sem
- 2. Replacement theory The Replacement Theory in Operations Research is used in the decision making process of replacing a used equipment with subsitiute. mostly a new equipment of better usage. The replacement might be necessary due to the deteriorating property or failure or breakdown of particular equipment.
- 3. Nature of selection problem • Capital equipments, which deteriorate with time, for example, trucks of a transport agency, lathe machine, etc. • Items which fail completely. These are handled under group replacement policy, for example, electric bulbs, electronic items, etc. • staffing problem.
- 4. Why it required • Due to New developments the Current equipments has become technical problem. • The Current Equipment has become unusable. • Regular improvement of technology. • Increaseing demand of goods and product.
- 5. Model-I: Aging of Machines • Items that deteriorate with time e.g. machine tools, vehicles, equipment buildings .
- 6. • Items becoming out-of-date due to new developments like ordinary weaving looms by automatic, manual accounting by tally, computers, cars ... Model-II: Availability of Similar New Machines with Better Usages
- 7. Model-III: Time Value of Machines • Items which deteriorate with time • The depreciation of money is considered in calculations
- 8. Model-IV: Group Replacements • Items which do not deteriorate but fail completely after certain amount of use like electronic parts, street lights.
- 9. Example • A machine requires higher operating cost. • A transport vehicle such as car requires more and more maintenance cost. • A railway timetable becomes more and more out of date with passage time.