An Optimization Function On Depreciation of Assets
Subject Areas : Fuzzy Optimization and Modeling Journal
1 - Department of Computer Science, Garmsar University
P. O. BOX 3588115589, Garmsar, Iran
Keywords: Optimization, Numerical Method, cost of production, Optimization function,
Abstract :
Depreciation is a measure of the durability of a fixed asset and refers to the ongoing decline in the quality, quantity, or value of an asset. In fact, over time, the efficiency of fixed assets that are constantly used in business will decrease. Therefore, depreciation can be considered as a kind of price reduction that will still occur even if the goods are properly stored and used properly. For example, no matter how well you maintain your property and take all necessary steps to maintain it properly, over time, you will see water pipes, appliances, etc. wear out. Note that depreciation does not mean erosion and destruction of an asset. Sometimes the costs of depreciating assets are repeated many times in the production process. We intend to present an optimization formula for a specific type of capital depreciation by presenting a mathematical model. Suppose the distance between two cities in a desert is a miles. On one side of the desert is a refinery and on the other side is an industrial factory that requires fuel produced by the refinery for production. N liters of fuel must be sent to this factory. A fuel carrier car is supposed to transport the fuel required by the industrial factory from the refinery. The capacity of this car is z liters. Suppose this car consumes one liter of fuel per mile. Assume that f(z,N,a) is equal to the maximum amount of fuel delivered by this vehicle to the industrial factory, then, when R=N+z-z⌈N/z⌉: