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 ICA  Vol.3 No.4 , November 2012
A Reward Functional to Solve the Replacement Problem
Abstract: The replacement problem can be modeled as a finite, irreducible, homogeneous Markov Chain. In our proposal the problem was modeled using a Markov decision process and then, the instance was optimized using dynamic programming. We proposed a new functional that includes a reward functional, that can be more helpful in processing industries because it considerate instances like incomes, maintenance costs, fixed costs to replace equipment, purchase price and salvage values; and this functional can be solved with dynamic programming and used to make effective decisions. Two theorems are proved related with this new functional. A numerical example is presented in order to demonstrate the utility of this proposal.
Cite this paper: E. Gress, O. Arango, J. Armenta and A. Reyes, "A Reward Functional to Solve the Replacement Problem," Intelligent Control and Automation, Vol. 3 No. 4, 2012, pp. 413-418. doi: 10.4236/ica.2012.34045.
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