Fuzzy strategic replacement analysis

This paper presents a fuzzy methodology for replacement of equipment. Issues such as fuzzy modeling of degradation parameters and determining fuzzy strategic replacement and economic lives are extensively discussed. For the strategic purpose, addible market and cost effects from the replacements against the counterpart, i.e., the existing equipment cost and market obsolescence, are modeled fuzzily and interactively, in addition to the equipment deterioration. Both the standard fuzzy arithmetic and here re-termed requisite-constraint vertex fuzzy arithmetic (or the vertex method) are applied and investigated. Two numerical examples and the results are provided.