Dynamic Cost Calculation Model for Handling Equipment Based on Markov Chains

Abstract

 Traditional equipment cost calculation methods use the deterioration value method, assuming constant equipment status and a linear uniform deterioration process. These methods fail to meet actual operational needs when issues such as faults and maintenance differences exist. Therefore, it is necessary to utilize Markov chain theory to construct a dynamic cost model including three states: excellent, medium, and inferior, with state transition probability matrices representing the uncertainty of equipment deterioration. The Markov chain model can more accurately reflect the impact of equipment state transitions on equipment life-cycle costs, providing a more accurate dynamic analysis for enterprise equipment life-cycle management and better reflecting the differences in the probabilities of each state and the costs of each state.