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In considering cost :reductions, it is natural to postpone equipment replacement until innovative equipment is made available, if it will appear in the near future. On the other hand, if new equipment with these characteristics is not made available in the near term, existing equipment is upgraded with similar products. This study discusses equipment replacement where innovative technological advances occur together with gradual technological advances. It aims to clarify theoretically anddoi:10.15807/jorsj.33.76 fatcat:3mguao5vcjfl3myrjwphk6zjym