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Justification method of the equipment replacement term when the period of equipment availability at the enterprise is uncertain

Authors: Dynchenkova T.V.
Published in issue: #4(69)/2022
DOI: 10.18698/2541-8009-2022-4-787


Category: Mechanical Engineering and Machine Science | Chapter: Machines, Units and Processes

Keywords: replacement period, period of equipment use, initial cost, variable operating costs, residual cost of equipment, dynamics of changes in equipment state, dynamic programming method in reverse time, modeling of equipment replacement process, stepwise target cost function
Published: 06.06.2022

In modern conditions the management of the equipment replacement process at the enterprise is carried out by the decision maker, based on the allocated financial resources, and this decision directly depends on the competence of this individual. The presented methodology is based on modeling the process of equipment replacement by the method of dynamic programming in reverse time. With an uncertain period of equipment provision, it allows the decision maker to determine the period of equipment use at the enterprise before its replacement, during which, by the criterion of minimum purchase and operation costs for the whole period as their sum of annual components, its replacement with an identical new one will not be required. In market conditions the strategy of equipment replacement on the basis of economic evaluation is the most preferable in terms of achieving the maximum effect in the management of the replacement process.


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