Capital Accumulation Under Technological Progress and Learning

A Vintage Capital Approach

Feichtinger, Gustav & Hartl, Richard F. & Kort, Peter M. & Veliov, Vladimir M., 2006. "Capital accumulation under technological progress and learning: A vintage capital approach," European Journal of Operational Research, Elsevier, vol. 172(1), pages 293-310, July.


In the paper, a model is developed considering the ideas that recent equipment has more productivity because of technological progress but old equipment also has improved productivity due to learning effect. The model comes out with capital accumulation when both old capital items and new capital items have higher productivity. It results some purchase of old vintage capital equipment even though recent vintage has higher productivity due to technological progress. A proposition is made in the paper.

Supply Chain Modeling: Past, Present and Future - 2002 Paper

Hokey Min and Gengui zhou
Computers and Industrial Engineering,  439(2002), 231-249


Modeling variables


Decision variables
      Location, allocation, Number of facilities and equipment, Number of echelons, Network structuring, Service sequence, volume
 

Constraints

     Supply chain capacity, service compliance, extent of demand

Risk elements
     Risk of quality failure, risk of information failure

Information/Knowledge constraints
      Real time communication, technology transfer

Monetary valuation/values
      Asset utilization, ROI, Cost behavior

Customer service measures
      Product availability, response time