Naslov
Multiobjective Design Optimization with Aggregate Fitness Function based on Total Lifecycle Cost

Autori
Vučina, Damir ; Lozina, Željan

Izvornik
WSEAS Transactions on Systems (1109-2777) 5 (2006), 7; 1617-1625

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
Multicriterial optimization; total lifespan cost; a-priori aggregate function

Sažetak
Multicriterial optimization based on a-priori articulation of the preferences and the respective aggregate functions is numerically efficient compared with Pareto- front generating methods. However, such expression of preferences and standard weight factors are in many cases based on subjective judgement and experience in the modelling process. This paper presents an approach which is expected to be objective since it is based on integral economic valuation of all optimality criteria and corresponding metrics. All criteria are expressed in total lifecycle value terms, financially discounted, and aggregated. This can be implemented based on total value generated or total cost measured and leads to an engineering optimization formulation coupled with economic fitness valuation. In order to implement the approach, all nonrecurring investments (such as material expenditure) and recurring operational expenses (such as maintenance costs) need to be discounted and cumulated into an integral compromise criterion. The project appraisal methodology introduces the Net Present Value (NPV) and the Internal Rate of Return (IRR) as adequate scalar measures for integral economic project performance. The resulting coupled engineering - financial decision making also provides a way to make performance assessments in cases of variable operating regimes where the NPV/ IRR formulation can capture the respective distributions.

Izvorni jezik
Engleski

Znanstvena područja
Strojarstvo, Temeljne tehničke znanosti

POVEZANOST RADA