Methodology for substantiating the period of equipment replacement for a given period of the enterprise

Authors: Dynchenkova T.V.
Published in issue: #1(78)/2023
DOI: 10.18698/2541-8009-2023-1-855
Category: Mechanical Engineering and Machine Science | Chapter: Machines, Units and Processes
Keywords: initial cost of equipment, variable operating costs, residual cost of equipment, changes in equipment condition, dynamic programming method, equipment replacement process, step function of costs, calculation of sequence of functions, optimal process trajectory, recurrent Bellman equations
Published: 15.02.2023

The decision maker at the enterprise is undoubtedly interested in the fact that during the operation of equipment at the enterprise there comes a time when it is more profitable to replace the existing equipment with a new one than to operate the old one at a high cost. The developed methodology allows the decision-maker, with a given period of providing the enterprise with equipment (or allocated funds for the maintenance of equipment), according to the criterion of minimum costs for the purchase and operation of equipment for the entire specified (or calculated based on the allocated funds) period of providing the enterprise with them in the form of their sum of annual components, to determine the optimal time for equipment replacement.

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