Fuzzy Replacement Analysis

Replacement analysisReplacement analysis is rooted in the concept that it may be financially advantageous to retire equipment prematurely in comparison to its physical lifespan. This critical juncture for replacement, termed the economic lifeEconomic life, is commonly determined through annual cash flow assessments. Traditional analyses employ deterministic predictions, which, however, fail to account for the inherent uncertainties in these predictions. This chapter focuses on employing triangular fuzzy setsTriangular fuzzy set (TFSs) and picture fuzzy setsPicture fuzzy set (PFSs) to calculate the economic lifespans of two replacement alternatives, known as the defender and the challengerChallenger. Estimates are solicited from three experts within TFSs and PFSs framework and subsequently aggregated using TFS and PFS, respectively aggregation operators. The chapter concludes that this proposed fuzzy replacement analyses has the potential to serve as a decision support model for managers operating in uncertain conditions.