Life Cycle Cost Optimization Within Decision Making on Alternative Designs
Paper Title:
Life Cycle Cost Optimization Within Decision Making on Alternative Designs
Abstract:
This paper is to feature the importance of the life cycle cost criteria in decision making on the proposals of construction projects. Life cycle costing is a method for financial analyzing of all costs associated with initial construction, operations over its lifespan, and maintaining a construction project over a defined period. Obtaining the costs and savings, we can then directly compare these areas and be fully informed when decisions will be made. The most significant advantage of life cycle costing can be obtained in the initial phase of the construction projects. Construction cost and equipment cost is vital for a complicated decision-making process in the optimization of the life-cycle cost of a project. In this paper, a probabilistic life cycle analysis will be performed to compare precast concrete pavement over traditional onsite casting. With this solution, the minimal value of the life-cycle cost of pavement alternative can be selected. This paper will also discuss the issues of life cycle costing and difficulties analyzing it. The study will also help to clarify the necessary data, and a suitable process of life cycle costing will be proposed. Decision-making using the probabilistic life cycle cost optimization will be demonstrated in this paper using GAMS.
