Journal article
STATIONARY DUAL PRICES AND DEPRECIATION
Mathematical programming, Vol.41(3), pp.357-366
09/01/1988
DOI: 10.1007/BF01580773
Abstract
This paper models a machine replacement and capacity expansion problem as an infinite-horizon linear program. We establish a strong duality result and show that stationary dual prices are optimal, regardless of initial conditions. These prices measure the economic value of owning vintage machinery and thus define depreciation schedules. We present necessary and sufficient conditions for straight-line depreciation.
Details
- Title: Subtitle
- STATIONARY DUAL PRICES AND DEPRECIATION
- Creators
- Philip C. Jones - Northwestern UniversityJames L. Zydiak - Northwestern UniversityWallace J. Hopp - Northwestern University
- Resource Type
- Journal article
- Publication Details
- Mathematical programming, Vol.41(3), pp.357-366
- DOI
- 10.1007/BF01580773
- ISSN
- 0025-5610
- eISSN
- 1436-4646
- Number of pages
- 10
- Language
- English
- Date published
- 09/01/1988
- Academic Unit
- Business Analytics
- Record Identifier
- 9984963120702771
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