Fuzzy Approach to Determine Optimum Economic Life of Equipment with Change in Money Value

Abstract

One of the most pragmatic and topical areas of engineering economics is replacement analysis. Fuzzy set theory is the main tool which has been applied in many real-life applications to tackle the dubiousness situation. The aim of this paper is to determine the optimal replacement period of equipment with imprecise costs. In this problem, all these imprecise costs are taken as trapezoidal fuzzy numbers. Also, the proposed method provides fuzzy optimal solution of replacement model without converting to a classical model. A numerical example is illustrated to validate the proposed method.