Revanth Sai Yayavaram
Dr. S. Gajanana
Kshetty Rahul
Abstract
In today’s vying business world, time plays a major role and everyone desires to get a swift service within a minimal waiting time. During this process, it is uncertain about the machine’s working as it may stop due to its failure or some other reason, which is not an ideal situation. So, as to minimize this, an operational researcher strives to develop a replacement model considering all the parameters affecting it to find out the optimum replacement period. The replacement problems are concerned with the situation that arises on a decrease in the efficiency of the item, failure or breakdown. The problem of replacement is to identify the best policy to determine the ideal replacement time which is most economical. In the current paper, different replacement models have been developed considering macroeconomic variable inflation and maintenance expenditure in a non-linear trend.
Keywords- Inflation, Replacement, Running cost, Monetary value, Salvage