Disposal of excess stock at the end of a project when facing on-going operational usage

In this paper we consider an important decision faced in many large-scale c onstruction projects. Specifically, there is a surplus stock of an item at the end of the construction phase. Moreover, the item is to be used (as a s pare part or for routine replacement) in the on-going operations of the fac ility. There is an opportunity to dispose of some of the stock but the marg inal salvage value is not necessarily constant. The decision variable is th e disposal quantity. (C) 1999 Elsevier Science B.V. All rights reserved.