Salvage Cost Research Articles

Optimum ordering policies with non-linear running and salvage costs

In this paper, we discuss a general ordering policy in which a spare delivered is put into inventory until a prespecified allowed inventory time unless an original unit fails, and further two special cases; 1) the spare is put into inventory until the original one fails; 2) the spare delivered takes over the operation immediately; introducing non-linear running and salvage costs. For the latter case 2), we also discuss the ordering policy including negative ordering time. We show that under certain conditions there exists a finite and unique optimum policy minimizing the expected total discounted cost, respectively, and present the relationships between the results in this paper and earlier contributions.

Optimum ordering policies with random lead times and salvage cost

This paper deals with the optimum ordering policy for a one unit system with general lifetime, where the failed unit is not repairable. A spare can only be provided after a lead time. Two kinds of orders (regular and emergency) are possible, each having a different lead time. A sensing device is attached to the unit by which the operational status of the unit is monitored continuously. The device is repairable and its lifetime and repair time are assumed to be exponentially distributed, random variables. The costs considered include salvage, penalty, downtime, ordering and repair costs. The optimal policy discussed is the one which maximizes the cost effectiveness.

Strategic Allocation of Inspection Effort In A Serial, Multi-Product Production System

Abstract For a multi-stage production system, optimal location of inspection activities is an important consideration in minimizing the inspection-related and salvage costs. Set-up and inventory carrying costs also become important factors when several products are produced on the same line due to the product changeovers involved. In this paper we discuss the effect of these additional costs (set-up and inventory carrying) on the inspection strategy, i.e., “all or none” versus partial inspection. We suggest a shortest path heuristic to determine the strategic location of inspection activities and the production lot sizes.

Static Inventory Model with Unknown Proportion of Defectives in the Supplied Lot

A static inventory model where lots received (against orders) are accepted through a curtailed single sampling inspection plan has been considered. Since the proportion of non-defective units in a lot is not likely to be known in advance, a probability Jaw has been assumed for the same. The optimal order quantity has been obtained by maximizing the expected net profit, taking into account selling price, purchase cost, carrying cost, shortage cost, salvage cost and inspcctioo cost.

Empirical Estimates of the Effects of Inflation on Salvage Values, Cost and Optimal Replacement of Tractors and Combines: Reply

Empirical Estimates of the Effects of Inflation on Salvage Values, Cost and Optimal Replacement of Tractors and Combines: Reply

Empirical Estimates of the Effects of Inflation on Salvage Value, Cost and Optimal Replacement of Tractors and Combines: Comment

Empirical Estimates of the Effects of Inflation on Salvage Value, Cost and Optimal Replacement of Tractors and Combines: Comment

An optimal maintenance model for life cycle costing analysis

For many systems of nominal complexity, subsequent life-time operating and maintenance costs may amount to a larger sum than their acquisition cost. In this respect, reliability and maintainabiltiy constitute two direct and very predominant factors in life cycle costing analysis. This paper outlines the optimal maintenance schedule that minimises the system's future total expected maintenance cost. This minimum maintenance cost may be added to research and development costs, operation costs and salvage costs to obtain the total life cycle cost of the system. The case in which the system has constant failure rate is investigated under imperfect inspection policy.

Empirical Estimates of the Effects of Inflation on Salvage Values, Cost and Optimal Replacement of Tractors and Combines

Empirical Estimates of the Effects of Inflation on Salvage Values, Cost and Optimal Replacement of Tractors and Combines

Optimum ordering policies with random lead times

This paper studies an optimum ordering policy for a single unit system with general life times and two kinds of orders (regular and emergency) with generally distributed lead times. The costs considered include salvage and observation costs along with shortage and reordering costs and an expression for cost effectiveness defined as (s-availability)/(s-expected cost rate), which balances the system effectiveness and the cost is derived. Two theorems regarding the existence of a finite and unique reordering time for regular orders maximizing the cost effectiveness are proved. For purpose of illustration numerical results are also obtained.

Optimum inspection-ordering policies with salvage cost : Naoto Kaio and Shunji Osaki. Microelectron. Reliab.18, p. 253 (1978)

Optimum inspection-ordering policies with salvage cost : Naoto Kaio and Shunji Osaki. Microelectron. Reliab.18, p. 253 (1978)

Optimum planned maintenance with salvage cost

We consider a planned maintenance policy of providing identical spares successively for replacement of a failed unit as corrective maintenance or a non-failed unit as preventive maintenance. We assume that an identical spare is provided by order with a lead time. Then we consider when we should order an identical spare to minimize the expected cost per unit time in the steady state. In particular, we take into account the salvage cost for the non-failed unit. We show that there exists an optimum ordering policy under certain conditions.

Optimum inspection-ordering policies with salvage cost

In this paper we consider an inspection-ordering policy for a single-unit system with two kind of lead times. Introducing the cost structures including salvage cost, we derive the cost effectiveness defined by (The steady-state availability)/(The expected cost per unit time in the steady-state). We show that under certain conditions there exists a finite and unique optimum policy maximizing that cost effectiveness. We also present the numerical examples for illustration.