Mathematical Models and Information System for Modeling Optimum Upgrade of Fixed Capital Assets

Askar Boranbayev, Yersultan Tulebayev

Research output: Contribution to journalConference articlepeer-review


This article discusses models and methods for the optimal replacement of fixed assets and introduces new algorithms for replacing assets with a limited prediction of changes in indefinite costs. The total cost is generated from the operating costs of the current asset that is being used; the cost of liquidating the asset and the cost of new assets. The variation in these costs depends on various factors such as technological changes, economic and environmental changes. Modern innovations enlarge the significance and intricacy of technological progress. The optimum substitution of assets is dissected when future direction of technical development is known over a restricted horizon. Matching of the actual and desired characteristics of existing substitution methods leads us to the idea of how to increase their effectiveness when technology changes, which translates into lower exploitative and new asset costs. We are studying renewed modes of the classical method of substituting an economic resource at an uncertain cost. We show that the modified methods provide solution substitution equal to or close to infinite horizon substitution under technological development. The considered algorithms work well for a random age apportionment of deterministic or stochastic recurrent expenses. We showcase their excellent productivity in a variety of technology advancement scenarios, resulting in reduction in operating costs and costs for new assets. Numerical research is presented and administrative decisions of the received results are considered. The information system of the mathematical model of asset replacement using the conventional economic life method and the modified economic life method is presented.

Original languageEnglish
Pages (from-to)202-209
Number of pages8
JournalCEUR Workshop Proceedings
Publication statusPublished - 2022
Event9th International Scientific Conference "Information Technology and Implementation" Workshop, IT and I-WS 2022 - Kyiv, Ukraine
Duration: Nov 30 2022Dec 2 2022


  • algorithm
  • Asset replacement
  • capital
  • method
  • optimal lifetime
  • technological update

ASJC Scopus subject areas

  • General Computer Science


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