Research on Full Life Cycle Investment Management Mechanism for Small-Scale Fixed Asset Procurement

DOI

10.2991/978-94-6239-758-3_5How to use a DOI?

Keywords

small-scale fixed asset procurement; life cycle cost; lean management; cash flow analysis; investment decision-making; power grid enterprise

Abstract

To enhance the scientific nature of investment decision-making and the level of refined management for small-scale fixed asset procurement in provincial-managed industrial subsidiaries, this paper constructs an investment management mechanism for such procurement equipment based on Life Cycle Cost Management(LCCM).The mechanism consists of two types of cash flow models: “procurement scheme” and “leasing scheme”, systematically incorporating procurement/leasing costs, maintenance, insurance, labor costs, depreciation tax shields, and residual value, and conducts comparative evaluation using both static and dynamic(discounted)approaches. On this basis, a 900mm-section ground-mounted dual-jib derrick is selected as a case study for calculation. The results show that under the given parameter conditions, the total static cash flow of the procurement scheme is reduced by 5.4627 million yuan compared with the leasing scheme, and the total dynamic cash flow is reduced by 2.9601 million yuan, based on which procurement is recommended as the priority. This research provides a replicable quantitative evaluation path for the “buy or lease” decision-making in small-scale procurement for power grid enterprises, and has reference value for improving procurement processes, enhancing investment efficiency, and strengthening control levels.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Zhenxing Zhang
AU  - Jingwen Liu
AU  - Xiaolong Liang
AU  - Youliang Chang
AU  - Jing Li
PY  - 2026
DA  - 2026/09/08
TI  - Research on Full Life Cycle Investment Management Mechanism for Small-Scale Fixed Asset Procurement
BT  - Proceedings of the 2026 7th International Conference on Management Science and Engineering Management (ICMSEM 2026)
PB  - Atlantis Press
SP  - 37
EP  - 45
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-758-3_5
DO  - 10.2991/978-94-6239-758-3_5
ID  - Zhang2026
ER  -