Selecting the best alternative based on life-cycle cost distributions of alternatives

Jiang, Renyan; Zhang, W. J.; Ji, Ping

doi:10.1016/s0925-5273(03)00202-0

Cited by 13 publications

(3 citation statements)

References 9 publications

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“…Ouyang and Madanat used mixed-integer nonlinear programming, which minimizes the life-cycle cost for a finite horizon, for highway pavement rehabilitation planning (22). Jiang et al used life-cycle cost analysis to select the best alternative among a set of candidates through a method that gives different weights to underbudget quantities and overbudget quantities (23). Kuhn and Madanat developed a model for the scheduling of usual maintenance work on networks through the use of a Markov chain by considering uncertainty in transition probabilities (24).…”

Section: User-oriented Model To Support Funding Decisions In Pavement Managementmentioning

confidence: 99%

User-Oriented Model to Support Funding Decisions in Pavement Management

Mellano

Dell’Orco

Sassanelli

2009

Transportation Research Record: Journal of the Transportation R

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A new choice model for corrective road maintenance work based on an economic evaluation of users’ expectations and perceptions about road quality is proposed. Because uncertainty affects human subjective perception processes, the model uses fuzzy sets to deal with this kind of uncertainty. Accordingly, the international roughness index was first fuzzified by combining users’ perceptions about pavement conditions with ranges of speeds for four different categories of rural roads. These fuzzy values were then used to calculate vehicle operating costs and freeflow speed. The latter can be considered a function of the international roughness index and the law enforcement factor. To calculate this factor, a fuzzy inference system was set up. Vehicle operating costs and free-flow speed, as well as the value of time, were then used to calculate the travel cost perceived by users. The model finds, through fuzzy maximization of the difference between perceived travel costs before and after interventions, the best allocation of the available budget for a rural road network. In other words, the results suggest the extent of interventions on specific road sections. An application to a real network shows how the proposed model may be used.

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Section: User-oriented Model To Support Funding Decisions In Pavement Managementmentioning

confidence: 99%

User-Oriented Model to Support Funding Decisions in Pavement Management

Mellano

Dell’Orco

Sassanelli

2009

Transportation Research Record: Journal of the Transportation R

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“…It has been recognized that probability methods are useful in handling uncertainty in cost models (Asiedu et al , 2000; Emblemsvåg, 2003; Nachtmann and Needy, 2003). Thus, instead of treating as fixed the input variables relating to, for example, performance, quality, and price requirements, it is more appropriate to quantify them in terms of probability distribution functions (Asiedu et al , 2000; Jiang et al , 2004). According to Emblemsvåg (2003), the Monte Carlo simulation is an especially useful method for cost management purposes.…”

Section: Life Cycle Matters – Motivation For Accountabilitymentioning

confidence: 99%

Learning by costing

Lindholm

Suomala

2007

International Journal of Productivity and Performance Management

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PurposeThe purpose of this paper is to discuss life cycle cost management and highlight the practical challenges related to collecting adequate data and practicing long‐term cost management in an uncertain environment.Design/methodology/approachThe paper reports a case study conducted in the Finnish Defence Forces. As part of the case study, a life cycle cost model for a case product was developed.FindingsActivity‐based life cycle cost modeling can provide relevant information for varying product management needs at different stages in the life of a product. Quantification of uncertainty is one of the elements in the modeling that can improve the feasibility of LCC both for cost estimation and tracking purposes.Originality/valueOnly a few empirical studies on life cycle costing have been reported which focus on the defence sector. The paper contributes to our understanding of how LCC can be used in a continuous manner and depicts how LCC can produce a sharpened cost image of a particular product.

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“…Life-cycle costs are the expenditure for development and production or acquisition, operation, maintenance, and disposal of one specific exemplar of a product [2]- [4]. Lifecycle costing deals with finding the cost-wise best solution for an investment over the whole life span of a product or asset [5]- [8]. Usually there will be a trade-off between costs occurring at different times of this life span (e.g.…”

Section: Life Cycle Costingmentioning

confidence: 99%

Towards the optimum cost of ownership of switched-mode power supplies: Early stage cost management with life-cycle costing

Bescherer

Sippola²

2006

IECON 2006 - 32nd Annual Conference on IEEE Industrial Electronics

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In order to minimize the total life-cycle ownership cost, selection should be based on the optimum trade-off between spending on design and manufacturing cost with the price of lost energy. This study shows that it is advantageous to use power supplies with higher efficiencies even when the initial development and manufacturing costs are higher. It is critical to make the correct decision at an early stage of design.This study uses life-cycle costing to analyze whether electronic products are designed optimally. We explore lifecycle ownership cost and identify corresponding efficiency levels. The study uses a cost-efficiency model that is based on industry cases and empirical data. Application is made of an early stage cost management method, used prior to, and during, product development and design. Two power supply types were analyzed. To identify the trade-off between higher development and manufacturing cost with running cost having energy losses, three different configurations (with efficiencies between 80% and 91%) were analyzed. The findings were evaluated through a sensitivity analysis to illustrate the robustness of results.

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Selecting the best alternative based on life-cycle cost distributions of alternatives

Cited by 13 publications

References 9 publications

User-Oriented Model to Support Funding Decisions in Pavement Management

User-Oriented Model to Support Funding Decisions in Pavement Management

Learning by costing

Towards the optimum cost of ownership of switched-mode power supplies: Early stage cost management with life-cycle costing

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