Optimal replacement time estimation for machines and equipment based on cost function

The article deals with a multidisciplinary issue of estimating the optimal replacement time for the machines. Considered categories of machines, for which the optimization method is usable, are of the metallurgical and engineering production. Different models of cost function are considered (both with one and two variables). Parameters of the models were calculated through the least squares method. Models testing show that all are good enough, so for estimation of optimal replacement time is sufficient to use simpler models. In addition to the testing of models we developed the method (tested on selected simple model) which enable us in actual real time (with limited data set) to indicate the optimal replacement time. The indicated time moment is close enough to the optimal replacement time t*.