Asset replacement under improving operating and capital costs: a practical approach
研究了技术变革数据不完整时序列资产更新问题，提出一种基于修正年资本回收因子的高效离散时间算法，在运营成本、资本成本和残值成比例下降时与无限期成本最小化基准结果一致，数值模拟显示其优于现有方法。
We analyse the serial asset replacement problem under incomplete data about technological change that that affects the capital cost, operating cost and salvage value of newer assets. We construct an efficient discrete-time algorithm for this problem in the case where only partial information is available about future costs of new assets. The algorithm is based on introducing a corrected annual capital recovery factor into the classic Economic Life method. It produces the same lifetime of the first asset as the benchmark infinite-horizon cost minimisation when the operating cost, capital cost and salvage value of new assets decrease proportionally. The algorithm has the same complexity as the Economic Life method but performs much better under improving technology. Numeric simulation demonstrates a superior efficiency of the suggested algorithm vs. existing methods in practical situations when only few discrete measurements of technological change are available.