SUBJECT: AOR

TOPIC: GROUP REPLACEMENT AND Individual

ReplacemenT

TEAM MEMBERS
POOJA.N
PERI.V
SRINITHY.J
VISHNU
VIJAY.K
RAKESH RAJ
NAVEEN.A
PRIYA.E
REPLACEMENT MODEL
Replacement policy of items breaking down
suddenly.
(a) Individuals replacement policy
(b) Group replacement policy

Replacement Problem are concerned with the

situations that arise when some items such as
men,machine,electric light bulbs,
need replacement due to decreased deficiency or
failure. Decreased efficiency or breakdown may be
either gradual or all of sudden. Replacement
Model.
When do we replace products or services?
 Two types of replacement policies are considered
when dealing with such situations are

Individual replacement policy

Under the individual replacement
policy, an item is replaced immediately after its failure.

Group replacement policy

Under the group replacement policy,
all the items are replaced irrespective of the fact whether all have
failed or not with a provision that if any item fails before the optimal
time it may be individually replaced.
EXAMPLE OF GROUP REPLACEMENT
 It should be noted that, group replacement does
involve periodic simultaneous replacements along
with individual replacements in between.

 Few examples are fluorescent tubes, light bulbs,

electronic chips, fuse etc.
Why group replacement
It is found that replacing these random failing items
simultaneously at specific intervals is economical as
compared to replacing them only when an item fails.
A long period between group replacements results in
increase in cost of individual replacements, while
frequent group replacements are definitely costly.
There lies the need to balance this and find an
optimum replacement time for optimum cost of
replacement.