A fully subjective approach to capital equipment replacement.
Scarf, PA and Apeland, S 2003, 'A fully subjective approach to capital equipment replacement.' , Journal of the Operational Research Society, 54 (4) , pp. 371-378.Full text not available from this repository.
The timing of replacement of equipment is dependent on factors like replacement costs, discount factors and differences in productivity, reliability and safety of existing and new equipment. Predictions related to these factors are, however, normally subject to uncertainties, and in this paper we discuss how two subjective approaches to representing uncertainties related to future events—the classical Bayesian approach and the fully subjective approach—can be used as a basis for decision-making about replacement. Some key features of the approaches are discussed, including integration of engineering judgements, uncertainty treatment and type of performance measures to be used. In the fully subjective approach, we advocate the direct subjective assessment of uncertainty in a quantity of interest, which should be observable, with decisions made on the basis of this uncertainty. The fully subjective approach is illustrated using an example in capital equipment replacement.
|Themes:||Subjects / Themes > H Social Sciences > HD Industries. Land use. Labor > HD0028 - 0070 Management. Industrial Management
Subjects outside of the University Themes
|Schools:||Schools > College of Business & Law > Salford Business School > Business and Management Research Centre|
|Journal or Publication Title:||Journal of the Operational Research Society|
|Depositing User:||H Kenna|
|Date Deposited:||21 Aug 2007 14:11|
|Last Modified:||29 Oct 2015 00:49|
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