Age Replacement Policy With Age-Dependent Minimal Repair^*

Abstract

The presence of quantity discounts, in general, increases the order quantities (lot size). Other factors such as limited space or limited cash, however, restrict the degree to which the lot sizes can be increased. In this paper we investigate a heuristic procedure to allocate the limited resources to the products so as best to exploit the discounting structure and the costs of storage and ordering. The heuristic procedure has been demonstrated to be computationally very effective and within 0,9% of the optimum solution in sample tests.