October  2005, 1(4): 415-432. doi: 10.3934/jimo.2005.1.415

Optimization of the lifetime of capital equipment using integral models

1. 

College of Business and Economics, Houston Baptist University, 7502 Fondren Road, Houston, TX 77074-3298, United States

2. 

Department of Mathematics, Prairie View A{\&}M University, P.O. Box 4189, Prairie View, TX 77446-4189, United States

Received  February 2005 Revised  September 2005 Published  October 2005

In Operations Research, the equipment replacement process is usually modeled as a discrete sequential decision problem. The alternative approach is developed in vintage capital models, which explicitly involve the lifetime of capital equipment and are described by the integral equations of a special type. The paper exposes a general investigation framework for the optimal control of the integral models with endogenous lags, which is applied to meaningful one- and two-sector vintage models. The analysis leads to nontrivial results such as turnpike properties of the optimal equipment lifetime and corresponding management strategies of equipment replacement.
Citation: Yuri Yatsenko, Natali Hritonenko. Optimization of the lifetime of capital equipment using integral models. Journal of Industrial & Management Optimization, 2005, 1 (4) : 415-432. doi: 10.3934/jimo.2005.1.415
[1]

Jinying Ma, Honglei Xu. Empirical analysis and optimization of capital structure adjustment. Journal of Industrial & Management Optimization, 2020, 16 (3) : 1037-1047. doi: 10.3934/jimo.2018191

[2]

Hong Zhang, Fei Yang. Optimization of capital structure in real estate enterprises. Journal of Industrial & Management Optimization, 2015, 11 (3) : 969-983. doi: 10.3934/jimo.2015.11.969

[3]

Nina Yan, Tingting Tong, Hongyan Dai. Capital-constrained supply chain with multiple decision attributes: Decision optimization and coordination analysis. Journal of Industrial & Management Optimization, 2019, 15 (4) : 1831-1856. doi: 10.3934/jimo.2018125

[4]

Simon Levin, Anastasios Xepapadeas. Transboundary capital and pollution flows and the emergence of regional inequalities. Discrete & Continuous Dynamical Systems - B, 2017, 22 (3) : 913-922. doi: 10.3934/dcdsb.2017046

[5]

Yu Chen, Zixian Cui, Shihan Di, Peibiao Zhao. Capital asset pricing model under distribution uncertainty. Journal of Industrial & Management Optimization, 2021  doi: 10.3934/jimo.2021113

[6]

Wenyan Zhuo, Honglin Yang, Leopoldo Eduardo Cárdenas-Barrón, Hong Wan. Loss-averse supply chain decisions with a capital constrained retailer. Journal of Industrial & Management Optimization, 2021, 17 (2) : 711-732. doi: 10.3934/jimo.2019131

[7]

Yongxia Zhao, Rongming Wang, Chuancun Yin. Optimal dividends and capital injections for a spectrally positive Lévy process. Journal of Industrial & Management Optimization, 2017, 13 (1) : 1-21. doi: 10.3934/jimo.2016001

[8]

B. D. Craven, Sardar M. N. Islam. An optimal financing model: Implications for existence of optimal capital structure. Journal of Industrial & Management Optimization, 2013, 9 (2) : 431-436. doi: 10.3934/jimo.2013.9.431

[9]

Xiaoqing Liang, Lihua Bai. Minimizing expected time to reach a given capital level before ruin. Journal of Industrial & Management Optimization, 2017, 13 (4) : 1771-1791. doi: 10.3934/jimo.2017018

[10]

Hongjun Peng, Tao Pang. Financing strategies for a capital-constrained supplier under yield uncertainty. Journal of Industrial & Management Optimization, 2020, 16 (2) : 887-909. doi: 10.3934/jimo.2018183

[11]

Chong Zhang, Yaxian Wang, Ying Liu, Haiyan Wang. Coordination contracts for a dual-channel supply chain under capital constraints. Journal of Industrial & Management Optimization, 2021, 17 (3) : 1485-1504. doi: 10.3934/jimo.2020031

[12]

Yong Ma, Shiping Shan, Weidong Xu. Optimal investment and consumption in the market with jump risk and capital gains tax. Journal of Industrial & Management Optimization, 2019, 15 (4) : 1937-1953. doi: 10.3934/jimo.2018130

[13]

Claudio Albanese, Simone Caenazzo, Stéphane Crépey. Credit, funding, margin, and capital valuation adjustments for bilateral portfolios. Probability, Uncertainty and Quantitative Risk, 2017, 2 (0) : 7-. doi: 10.1186/s41546-017-0019-2

[14]

Qiang Yan, Mingqiao Luan, Yu Lin, Fangyu Ye. Equilibrium strategies in a supply chain with capital constrained suppliers: The impact of external financing. Journal of Industrial & Management Optimization, 2021, 17 (6) : 3027-3047. doi: 10.3934/jimo.2020106

[15]

Serena Brianzoni, Giovanni Campisi. Dynamical analysis of a banking duopoly model with capital regulation and asymmetric costs. Discrete & Continuous Dynamical Systems - B, 2021, 26 (11) : 5807-5825. doi: 10.3934/dcdsb.2021116

[16]

Honglin Yang, Qiang Yan, Hong Wan, Wenyan Zhuo. Bargaining equilibrium in a two-echelon supply chain with a capital-constrained retailer. Journal of Industrial & Management Optimization, 2020, 16 (6) : 2723-2741. doi: 10.3934/jimo.2019077

[17]

Manman Li, George Yin. Optimal threshold strategies with capital injections in a spectrally negative Lévy risk model. Journal of Industrial & Management Optimization, 2019, 15 (2) : 517-535. doi: 10.3934/jimo.2018055

[18]

Qiang Lin, Ying Peng, Ying Hu. Supplier financing service decisions for a capital-constrained supply chain: Trade credit vs. combined credit financing. Journal of Industrial & Management Optimization, 2020, 16 (4) : 1731-1752. doi: 10.3934/jimo.2019026

[19]

Dingjun Yao, Rongming Wang, Lin Xu. Optimal dividend and capital injection strategy with fixed costs and restricted dividend rate for a dual model. Journal of Industrial & Management Optimization, 2014, 10 (4) : 1235-1259. doi: 10.3934/jimo.2014.10.1235

[20]

Chuancun Yin, Kam Chuen Yuen. Optimal dividend problems for a jump-diffusion model with capital injections and proportional transaction costs. Journal of Industrial & Management Optimization, 2015, 11 (4) : 1247-1262. doi: 10.3934/jimo.2015.11.1247

2020 Impact Factor: 1.801

Metrics

  • PDF downloads (112)
  • HTML views (0)
  • Cited by (18)

Other articles
by authors

[Back to Top]