An Interval Type-2 Fuzzy Dynamic Approach To Replacement of Server Equipment

Abstract

Equipment replacement decision which aims to find the best time to retire an old system is a key element in the planning process. Replacement scenarios consider the life span associated to each equipment category and the replacement of the obsolete equipment by an equivalent during the remaining life span after its obsolescence. This multi-stage decision-making problem can be solved by dynamic programming, but technical features that change over the years, unpredictable economy and time can cause uncertainty in prices. By combining classical dynamic programming with fuzzy set theory, this model can be revised. The purpose of this paper is to develop an optimal equipment replacement policy using combined interval type-2 fuzzy set and dynamic programming for the first time. The proposed methodology is applied to server equipment replacement problem.