ABSTRACT
A replacement problem occurs when the job performing units, such as men, machines, equipment, and others become less effective or useless owing to either a sudden or gradual deterioration in their efficiency or failure or complete a breakdown. This chapter discusses two categories of replacement techniques to determine the best replacement strategies for the items that deteriorate with time and those that do not deteriorate but suddenly fail. Those models are discussed in terms of parameters, such as cost of maintenance, time, and money value. Different formulations for the problems and their solutions are presented. All learning outcomes, solved examples, questions, and practice problems are mapped with Bloom’s Taxonomy level (BT level) 1 to 6.
