1. Understanding the fact that replacement of depreciable assets is necessary.
  2. Formulatingtheories for Replacement Theory
  3. Understanding replacement policy for goods whose cost of maintenance increases with time and the value of money also changes at a constant rate at that time.
  4. Understanding the mechanism behind sudden failure of systems.
  5. Analysing group replacement policy.

Chapter Outline

  • Introduction
  • Replacement of goods which degenerates with time without considering any change in value of money.
  • Replacement policy of a machinery whose operating cost auguments with time and its value for money also changes at a constant rate with time.
  • Replacement policy for equipment whichsuddenlyfails
  • Group replacement policy
  • Manpower replacement policy
  • Review and discussing questions


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