An equipment replacement problem with dynamic production planning and capacity considerations

In this paper, we propose a 0-1 integer programming formulation for an equipment replacement problem in which the demand of a product varies from period to period and different types of equipment with different production capacities are available. Since all the variables involved in the model are restricted to have binary values, the model is fairly efficient and hence can be used for large-sized problems. The use of the model is demonstrated with the help of some numerical examples.