Optimal Replacement Strategies in Heat Transmission Systems

CERGE-EI Working Paper Series No. 91

21 Pages Posted: 31 Jan 2010

See all articles by Jacek Cukrowski

Jacek Cukrowski

CASE - Center for Social and Economic Research

Date Written: February 1, 1996

Abstract

In this paper, the issue of maintaining an optimal level of services provided by heat transmission systems working in indefinite time is analyzed. In such systems, a stable level of services can be preserved only if parts of the heat transmission pipelines are periodically replaced. It is shown that the replacement policies that maximize total discounted net benefits in indefinite time are stationary (i.e., intervals of the pipelines of the same length have to be replaced in each period). The paper presents methods for determining stationary replacement policies in homogeneous and non-homogeneous heat transmission pipelines. Moreover, it is shown that, for the purpose of analyzing stationary replacement, complex heat transmission networks can be decomposed into a set of non-homogeneous pipelines. Such a decomposition simplifies the analysis and makes the methods presented useful for investigating heat transmission networks of any size.

Suggested Citation

Cukrowski, Jacek, Optimal Replacement Strategies in Heat Transmission Systems (February 1, 1996). CERGE-EI Working Paper Series No. 91. Available at SSRN: https://ssrn.com/abstract=1544237 or http://dx.doi.org/10.2139/ssrn.1544237

Jacek Cukrowski (Contact Author)

CASE - Center for Social and Economic Research ( email )

Center for Social and Economic Research,
Warsaw
Poland

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