Equipment Replacement and Maintenance (Leaving Cert Applied Maths): Flashcards
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Optimization technique for equipment replacement problems
Optimization technique for equipment replacement problems
Dynamic programming
Key challenge in equipment replacement decisions
Key challenge in equipment replacement decisions
Balancing increasing maintenance costs vs high initial replacement cost
Direction to work in dynamic programming for equipment replacement
Direction to work in dynamic programming for equipment replacement
Backwards from the final year
Name of method for working backwards in dynamic programming
Name of method for working backwards in dynamic programming
Backward induction method
Four components in equipment replacement cost calculation
Four components in equipment replacement cost calculation
Purchase cost, maintenance cost, resale value, future optimal value
Equipment replacement cost formula
Equipment replacement cost formula
How optimal decisions are marked in decision table
How optimal decisions are marked in decision table
With asterisks (*)
Trend of maintenance costs as equipment ages
Trend of maintenance costs as equipment ages
Increases due to wear and tear
Trend of resale value over time
Trend of resale value over time
Decreases due to depreciation
Why backward approach is essential in this problem
Why backward approach is essential in this problem
Need to know optimal future costs before making current decision
How to find the optimal replacement strategy from table
How to find the optimal replacement strategy from table
Follow the path of asterisked entries
Required form for costs to enable accurate comparison
Required form for costs to enable accurate comparison
All costs in present value terms
Result of keeping equipment too long
Result of keeping equipment too long
High maintenance costs