OPTIMIZATION MODEL FOR VEHICLE ROUTING AND EQUIPMENT REPLACEMENT IN FARM MACHINERY

Carolina Grano,Eder Abensur

doi:10.1590/1809-4430-eng.agric.v37n5p987-993/2017

Carolina Grano, Eder Abensur

Open Access

https://doi.org/10.1590/1809-4430-eng.agric.v37n5p987-993/2017

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Journal: Engenharia Agrícola	Publication Date: Sep 1, 2017
Citations: 2	License type: cc-by

Affiliation: Universidade Federal do ABC

Abstract

ABSTRACT: An equipment replacement decision takes into account economic engineering models based on discounted cash flow (DCF) such as the Annual Equivalent Cost (AEC). Despite a large number of researches on industrial assets replacement, there is a lack of studies applied to farm goods. This study aimed at assessing an alternative model for economic decision analysis on farm machinery replacement, with no restrictions on the number of replacements and assessed goods during a defined timeline. The results of the hybrid model based on the combination of the vehicle routing problem and the equipment replacement problem (RVPSE) applied to three different farm tractors showed the model reliability, providing a wider range of decisions for management support.

Highlights

A decision-making based on a rigorous analysis of available possibilities is crucial to ensure competitiveness and improve the use of resources
The results obtained by RVPSE and Annual Equivalent Cost (AEC) in the simulation of the three problems are shown in table 4
When there is an indication of replacement, it occurs at an early opportunity for both models

Summary

Introduction

A decision-making based on a rigorous analysis of available possibilities is crucial to ensure competitiveness and improve the use of resources. Replacement of capital goods is among the mandatory and relevant resolutions throughout the lifetime of companies, mainly for industries. As described by Abensur (2015), errors in these decisions could jeopardize a company survival within its dynamic competitive environment. Capital investment associated with an increased use of farm machinery have been among the main responsible factors for a growing farm productivity in Brazil (Gasques et al, 2016). Useful methods for deciding on the best time of replacement may reflect on profitability and financial sustainability (Vega & Abensur, 2014) According to Abensur (2015), studies on equipment replacement are significantly limited, being restricted to (i) a single replacement during an analyzed timeline, and (ii) replacement comparison generally against a single substitute good.

Objectives

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Results