Analytical model for the ship purchase and maintenance decision in the new economy

Abstract

The maritime industry is currently increasing, and the industry will continue to grow due to the rapid growth of the global economy. The industry and the business of maritime companies bring with them the issue of vessel renewal and repair. To explore the impact of vessel renewal or repair on the company's benefits, we conducted a simulation experiment focusing on how the company should ensure maximum benefits if the vessel needs to be repaired. On the one hand, repair the vessel to continue operations. On the other hand, new vessels are purchased to replace the old ones. According to the data, Shipping companies make higher profits by replacing their vessels with new ones.