Replacement Problem in Operations Research when constant resale value is given
Автор: Study With Saife
Загружено: 2025-04-18
Просмотров: 142
Описание: The Replacement Problem in Operations Research involves determining the most cost-effective time to replace equipment or assets to minimize the total cost over time. When a constant resale value is given—meaning the asset can be sold at the same fixed price regardless of its age—the analysis becomes simpler. In this case, only the increasing maintenance and operating costs, along with the initial purchase cost and the fixed resale value, are considered. The objective is to identify the point at which the average cost per year (or equivalent annual cost) is minimized. This is done by calculating the total cost of keeping the asset for different periods, subtracting the constant resale value, and dividing by the number of years. The year with the lowest average cost is considered the optimal replacement time.
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