INFORMS Journal on Applied Analytics · 1983 · 33 citations · 0 references
BusinessIndustrial EngineeringOperations ManagementDecision AnalysisOperations ResearchOptimizationDynamic OptimizationDynamic ProgrammingMaintenance OptimizationMathematical ProgrammingOptimization ModelingReplacement DecisionsDiscounted Cash Flow ModelingDynamic Replacement ModelsEquipment Fleet OptimizationEquipment Replacement AnalysisEquipment Replacement PolicyOptimal Replacement PolicyReplacementVehicle Replacement
A computer program using a dynamic programming algorithm to optimize the projected discounted cash flow is used by fleet managers at Phillips Petroleum Company in making replacement decisions for individual highway tractors. Now it is also being used to formulate policies for replacing passenger cars and light trucks.