THE REPLACEMENT-RENEWAL OF INDUSTRIAL EQUIPMENTS. THE MAPI FORMULAS

Since the production has been found to be an economical means for satisfying human wants, this process requires a complex industrial organization together with a large investment in equipments, plants and productive systems. These productive systems are employed to alter the physical environment and...

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Published inAnalele Universităţii din Oradea. Ştiinţe economice Vol. 1; no. 1; pp. 667 - 680
Main Authors Meo Colombo Carlotta, Pellicelli Michela, Mella Piero
Format Journal Article
LanguageGerman
Published University of Oradea 01.07.2010
Subjects
adverse minimum
defender and challenger plant
Mapi formulas
one-more year test
operating inferiority
replacement/renewal policy
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Summary:Since the production has been found to be an economical means for satisfying human wants, this process requires a complex industrial organization together with a large investment in equipments, plants and productive systems. These productive systems are employed to alter the physical environment and create consumer goods. As a result, they are consumed or become obsolete, inadequate, or otherwise candidates for replacement. When replacement is being considered, two assets must be evaluated: the present asset, the defender and its potential replacement, the challenger. Since the success of an industrial organization depends upon profit, replacement should generally occur if an economic advantage will result. Whatever the reason leading to the consideration of replacement, the analysis and decisions must be based upon estimates of what will occur in the future. In this paper we present the Mapi algorithm as a procedure for evaluating investments or for analyzing replacement opportunities.
ISSN:1222-569X
1582-5450