Methods and software for simulation of optimal renewal of capital assets

Askar Boranbayev, Seilkhan Boranbayev, Yuri Yatsenko, Yersultan Tulebayev

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)


This article surveys recent developments in the optimal renovation of capital assets and introduces new asset replacement algorithms under limited forecast about changing uncertain costs. The costs include operating costs of the current asset in use and the replacement cost (price of new assets). The evolution of those costs depends on external technological, economic, and environmental factors. The open innovation increases the importance and complexity of technological change. We study new modifications of the classic Economic Life replacement method for uncertain costs. The analyzed algorithms work well for arbitrary age-distribution of deterministic or stochastic operating cost. We demonstrate their superior performance in various scenarios of improving technology reflected in decreasing operating and new asset costs. Numeric experiments are provided, and managerial implications of the obtained outcomes are discussed.

Original languageEnglish
Pages (from-to)3545-3558
Number of pages14
JournalJournal of Theoretical and Applied Information Technology
Issue number21
Publication statusPublished - Nov 2020


  • Capital Asset
  • Improving Technology
  • Modeling
  • Optimization
  • Renovation

ASJC Scopus subject areas

  • Theoretical Computer Science
  • General Computer Science


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