Engineering Economist articles from January 1998

Engineering Economist archives from January 1998

Optimal replacement under variable intensity of utilization and technological progress.
January 1, 1998... INTRODUCTION The most fundamental idea of any economic analysis of replacement investments is the difference between the physical and economic life of capital equipment. Replacement investments have been studied in the economic literature...

Using opportunity costs to determine the cost of quality: a case study in a continuous-process industry.
January 1, 1998... INTRODUCTION AND PROBLEM SETTING Imagine a company in which every process is working at maximum capacity. Imagine also that the processes work in harmony to manufacture products that fully meet customers' requirements. If no extra effort is...

Capital budgeting decisions with fuzzy projects.
January 1, 1998... INTRODUCTION Conventional capital budgeting using linear programming techniques deals with deterministic models in which all the investment proposals are modeled as exact numbers. However, in practice precise information concerning future...

Optimal buyer-seller discount pricing and ordering policy for deteriorating items.
January 1, 1998... INTRODUCTION Discount pricing and ordering policy have been widely used in inventory management to reduce the total system cost. In a business dealing, the buyer controls when to replenish stock and how much stock to replenish to minimize...

On the use of Martingales in Monte Carlo approaches to multiperiod parameter uncertainty in capital investment risk analysis.
January 1, 1998... INTRODUCTION Two basic approaches to risk analysis for capital investment projects are deterministic techniques involving such methods as error propagation and error analysis (see Bevington [1], Brandt [3], Cox and Baybutt [4], Seiler [10] and...