A ROBUST REPLACEMENT MODEL WITH APPLICATIONS TO MEDICAL EQUIPMENT

Perceived shortcomings in the applicability of capital equipment repla cement modelling, identified in a 1987 survey within the UK are addres sed and a robust replacement model formulated. First, however, a compa rison between the 1987 survey and a similar 1988 survey undertaken wit hin the USA is made and explanations for apparent differences in concl usions are presented. A replacement model is then developed in the con text of medical equipment where factors such as service and risk play a role in replacement decision-making. A mechanism for quantitatively allowing for qualitative and for political type factors within a short time horizon replacement model is introduced by means of a penalty fa ctor. A case example is presented for medical ventilator equipment.