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Acquisition of new technology information for maintenance and replacement policies

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  • Khanh T.P. Nguyen
  • Thomas Yeung
  • Bruno Castanier

Abstract

In this paper, we propose the first model that considers the option to acquire information on the profitability of a new technology that is not yet available on the market for asset maintenance and replacement decisions. We consider the uncertainty of future asset characteristics by incorporating information acquisition decisions into a non-stationary Markov decision process framework. Using this framework, we optimise asset maintenance and replacement decisions as well as the optimal timing of new technology adoption. Through mathematical analyses, the monotone properties and convexity of the value function and optimal policy are deduced. Deeper numerical analyses highlight the importance of considering the acquisition of information on future technology when formulating a maintenance and replacement policy for the asset. We also deduce a non-intuitive result: an increase in the arrival probability of new technology does not necessarily make the acquisition of additional information more attractive.

Suggested Citation

  • Khanh T.P. Nguyen & Thomas Yeung & Bruno Castanier, 2017. "Acquisition of new technology information for maintenance and replacement policies," International Journal of Production Research, Taylor & Francis Journals, vol. 55(8), pages 2212-2231, April.
    • Handle: RePEc:taf:tprsxx:v:55:y:2017:i:8:p:2212-2231
    DOI: 10.1080/00207543.2016.1229069
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    References listed on IDEAS

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    5. Clavareau, Julien & Labeau, Pierre-Etienne, 2009. "Maintenance and replacement policies under technological obsolescence," Reliability Engineering and System Safety, Elsevier, vol. 94(2), pages 370-381.
    6. Clavareau, Julien & Labeau, Pierre-Etienne, 2009. "A Petri net-based modelling of replacement strategies under technological obsolescence," Reliability Engineering and System Safety, Elsevier, vol. 94(2), pages 357-369.
    7. Hagspiel, Verena & Huisman, Kuno J.M. & Nunes, Clàudia, 2015. "Optimal technology adoption when the arrival rate of new technologies changes," European Journal of Operational Research, Elsevier, vol. 243(3), pages 897-911.
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    Cited by:

    1. Edmund Mallinguh & Christopher Wasike & Zeman Zoltan, 2020. "Technology Acquisition and SMEs Performance, the Role of Innovation, Export and the Perception of Owner-Managers," JRFM, MDPI, vol. 13(11), pages 1-19, October.
    2. Hernita Hernita & Batara Surya & Iwan Perwira & Herminawaty Abubakar & Muhammad Idris, 2021. "Economic Business Sustainability and Strengthening Human Resource Capacity Based on Increasing the Productivity of Small and Medium Enterprises (SMEs) in Makassar City, Indonesia," Sustainability, MDPI, vol. 13(6), pages 1-36, March.
    3. Nguyen, Khanh T.P. & Medjaher, Kamal, 2019. "A new dynamic predictive maintenance framework using deep learning for failure prognostics," Reliability Engineering and System Safety, Elsevier, vol. 188(C), pages 251-262.

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