Developing an Optimal Repair-Replacement Strategy for Pallets

Abstract

The problem of determining when to repair and when to replace failing equipment is a concern of management of productive resources. Inefficient management due to the use of non-optimal repair-replacement policies can have significant financial implications. The purpose of this paper is to describe the problem, analysis and results of a study which is concerned with determining the optimal repair-replacement strategy for an organization managing a large number of wooden pallets.