Parallel machine replacement under horizon uncertainty |
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| Authors: | Javad Seif Brett A Shields |
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| Institution: | 1. Reliability and Maintainability Center, The University of Tennessee, Knoxville, Knoxville, Tennessee;2. Department of Physics and Engineering, Francis Marion University, Florence, South Carolina |
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| Abstract: | Construction projects usually get delayed for several time periods. When the planning horizon of a project is extended, projections for purchase and salvage of machinery within the planning horizon become inaccurate and less beneficial and often lead to unexpected costs. In this article, we formulate a parallel machine replacement (PMR) problem as a two-stage stochastic program with an uncertain planning horizon. We consider renting as an alternative to purchasing and maintaining the machinery. We show the application of the model through a case study in construction projects. Through numerical analysis, we derive managerial implications and show the value of the stochastic model. |
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