Statistical Simulation of Life Cycle Cost

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F68407700%3A21630%2F20%3A00349300" target="_blank" >RIV/68407700:21630/20:00349300 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.36689/uhk/hed/2020-01-095" target="_blank" >https://doi.org/10.36689/uhk/hed/2020-01-095</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.36689/uhk/hed/2020-01-095" target="_blank" >10.36689/uhk/hed/2020-01-095</a>

Result language
angličtina
Original language name
Statistical Simulation of Life Cycle Cost
Original language description
This paper contributes to literature aiming to improve corporate decision-making policies in times of depressed margins and increased business uncertainty. Starting from a case study based on actual servicing systems, it develops and applies a value-based decision-making model using a combination of life cycle costing and statistical simulation. It is shown that this approach generates meaningful results wherever there are alternative solutions available for component parts of servicing units, differing in a range of functional characteristics and involving risk. In contrast to conventional capital budgeting, such a model provides full assessment of contingent or intangible costs, such as the impacts of device reliability. Simulation results and their reliability can be analyzed using standard statistical methods. Sensitivity analyses are vital for the determination of relevant risk factors.
Czech name
—
Czech description
—

Project
—
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2020
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
Hradec Economic Days proceedings of the international scientific conference Hradec Economic Days
ISBN
978-80-7435-776-3
ISSN
2464-6059
e-ISSN
—
Number of pages
6
Pages from-to
842-847
Publisher name
Univerzita Hradec Králové
Place of publication
Hradec Králové
Event location
Hradec Králové
Event date
Apr 2, 2020
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
000568108700093

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