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Aspects of Life-Cycle Costs of an Asset

  • D. J. Leech
  • F. Etemad

Summary

Simple simulation is used to demonstrate that: deterministic methods may lead to our recovering less than the cost of a capital asset; our attempting to use an asset to the full extent of its apparent availability will cause late product delivery; any spares holding or replacement policy will be variable in its outcome and cost may not be very sensitive to the policy.

Keywords

Cash Flow Weibull Distribution Capital Asset Replacement Policy Work Content 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. [1]
    Winfrey R (1973) Statistical Analysis of Industrial Property Retirements Bulletin 125 (revised), ERI, The Iowa State University Press, Ames.Google Scholar
  2. [2]
    Kateregga A K (1981) Equipment lives. MSc Thesis, University of Wales, Wales.Google Scholar
  3. [3]
    Leech D J & Earthrowl D L (1971) Predicting design costs. Aeronautical Journal, 76 (741) [see alsoGoogle Scholar
  4. Leech D J & Turner B T (1985) Engineering Design for Profit Ellis Horwood, Chichester].Google Scholar
  5. [4]
    Smith G W (1973) Engineering Economy Iowa State University Press, Ames.Google Scholar

Copyright information

© Springer Science+Business Media New York 1986

Authors and Affiliations

  • D. J. Leech
    • 1
  • F. Etemad
    • 1
  1. 1.Department of Management Science and StatisticsUniversity College of SwanseaSwanseaUK

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