OBSOLESCENCE AS A FACTOR IN THE DEPRECIATION OF CONSTRUCTION EQUIPMENT

THE EFFECTS OF EQUIPMENT OBSOLESCENCE WERE STUDIED ON OWNERSHIP POLICY, PARTICULARLY AS IT AFFECTS THE CONSTRUCTION INDUSTRY. AN INDUSTRY SURVEY WAS CONDUCTED WHICH CONSISTED OF A QUESTIONNAIRE AND PERSONAL INTERVIEWS. A THEORETICAL ANALYSIS WAS CONDUCTED TO SIFT OUT THE VARIOUS ECONOMIC EFFECTS OF TECHNOLOGICAL IMPROVEMENT. THESE WERE TRANSLATED INTO A MATHEMATICAL THEORY TO EXPRESS THE INTER-RELATION OF OBSOLESCENCE, INFLATION, AND OTHER ECONOMIC FACTORS AND TO APPRAISE THEIR INFLUENCE ON THE ECONOMIC LIFE OF CONSTRUCTION EQUIPMENT. A MATHEMATICAL MODEL WAS USED WITH A DIGITAL COMPUTER ANALYSIS TO DEMONSTRATE THE THEORETICAL APPROACH TO OBSOLESCENCE. THE COSTS OF OWNING AND OPERATING A CRAWLER TRACTOR IN THE 200 HORSEPOWER CLASS WERE FED INTO THE COMPUTER PROGRAM. RESULTS SHOWED THAT THE ECONOMIC LIFE OF THE CRAWLER TRACTOR WAS SHORTENED BY THE PRESSURE OF TECHNOLOGICAL IMPROVEMENTS IN REPLACEMENT MACHINES.

  • Supplemental Notes:
    • Tr No 22, SECOND PRINTING, 123 PP, 21 FIG, 11 TAB, 2 APP,
  • Corporate Authors:

    Stanford University

    Department of Civil Engineering
    Stanford, CA  United States  94305
  • Authors:
    • Douglass, J
  • Publication Date: 1968-2

Subject/Index Terms

Filing Info

  • Accession Number: 00215266
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jul 27 1970 12:00AM