TY - JOUR
T1 - Parallel asset replacement problem under economies of scale with multiple challengers
AU - Esra Büyüktahtakin, Büyüktahtakin
AU - Cole Smith, J.
AU - Hartman, Joseph C.
AU - Luo, Shangyuan
N1 - Funding Information:
J. COLE SMITH is a professor of Industrial and Systems Engineering (ISE) at the University of Florida. His research has been supported by the NSF, DARPA, AFOSR, and the ONR, and he has spent one summer as a distinguished visiting professor with the Department of Defense. His research regards mathematical optimization models and algorithms, especially those arising in combinatorial optimization. Dr. Smith has collaborated with colleagues across many different disciplines, including Mathematics, Ecology, Psychology, Computer Science, and Biomedical Engineering. His awards include the Young Investigator Award from the ONR, the Hamid K. Elden Outstanding Young Industrial Engineer in Education award, the Operations Research Division Teaching Award, and the best paper award from IIE Transactions in 2007.
Funding Information:
This work has been supported by the National Science Foundation through grants EPS-0903806 and CMMI-11000765, the Defense Threat Reduction Agency through grant HDTRA1-10-1-0050, the Air Force Office of Scientific Research under grant FA9550-12-1-0353, the Office of Naval Research under grant N000141310036, and the State of Kansas through the Kansas Board of Regents.
PY - 2014/10/1
Y1 - 2014/10/1
N2 - The parallel replacement problem under economies of scale (PRES) determines minimum cost replacement schedules for each individual asset in a group of assets that operate in parallel. A fixed cost is incurred in any period in which an asset is purchased. These fixed costs induce economies of scale, making replacement schedules for these assets economically interdependent. We prove that PRES is NP-hard and present integer programming formulations for four variants of the problem in which multiple asset types, or challengers, are available for replacement (MPRES). We then derive valid inequalities for PRES and MPRES, which are similar in structure to flow cover inequalities developed in the context of fixed charge network problems. Experiments illustrate that the inequalities are effective in improving the integrality gap of MPRES instances.
AB - The parallel replacement problem under economies of scale (PRES) determines minimum cost replacement schedules for each individual asset in a group of assets that operate in parallel. A fixed cost is incurred in any period in which an asset is purchased. These fixed costs induce economies of scale, making replacement schedules for these assets economically interdependent. We prove that PRES is NP-hard and present integer programming formulations for four variants of the problem in which multiple asset types, or challengers, are available for replacement (MPRES). We then derive valid inequalities for PRES and MPRES, which are similar in structure to flow cover inequalities developed in the context of fixed charge network problems. Experiments illustrate that the inequalities are effective in improving the integrality gap of MPRES instances.
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U2 - 10.1080/0013791X.2014.898113
DO - 10.1080/0013791X.2014.898113
M3 - Article
AN - SCOPUS:84904235642
VL - 59
SP - 237
EP - 258
JO - Engineering Economist
JF - Engineering Economist
SN - 0013-791X
IS - 4
ER -