Mathematical model for the calculation of life cycle cost of the Kamaz truck

Abstract

Currently, research on life cycle and product life cycle management is of interest in many countries, especially for products of high complexity and long service life. One of the issues of product life cycle management is the calculation and determination of product life cycle costs. Calculating the product life cycle costs will allow managers and users to know the cost that needs to be spent on acquiring the product (purchase cost), as well as corrective maintenance cost, preventive maintenance cost, operation cost, disposal cost, and also indicates the economic efficiency of purchasing, operating and using this product. This paper presents the mathematical model allowing a truck’s life cycle cost calculation and performs calculations for a specific Kamaz 43119/43118 truck. The calculation results allow evaluation of the contribution level of the cost components in the product life cycle, thus allowing managers to build financial estimates for the life cycle stages and compare the calculated product life cycle costs with the types of products in suitable circulation.