Developing a Mathematical Model for Determination of Asset Management Strategy Based on Maintenance and Procurement Factors

Increasing the complexity of physical assets, mostly causes increasing in their price. On the other hand, financial limitation of companies do not let them to invest high amount of their capital in physical assets. Hence, equipment providers offer variety of financial ways for users to provide ability to fulfill their needed functions of an asset and efficient operation. Additionally, maintenance strategy of the equipment affect their life cycle cost and service level. Hence, companies are required to choose the optimum physical asset management strategy, in order to avoid inefficiency. The proposed mathematical model in this research determines the optimum strategy by interconnecting procurement parameters, maintenance scheduling variables and equipment working historical data based on the project time horizon. The output of the model consists of the procurement way (Buy, Lease &Upgrade), Maintenance Strategy (PM degree, PM Interval &Upgrade level) and cost. The model has been applied for a specific equipment in a copper mine for 10 years using to illustrate variables relationship.