THE ORIGINS OF ENGINEERING ECONOMIC CALCULATIONS: THE CONTRIBUTION OF W. THOMSON (LORD KELVIN) AND V. G. SHUKHOV TO THE FORMULATION OF THE REDUCED COST CONCEPT

Vasil'ev, Stanislav; Kluchko, Vladimir

PII

S0205-96060000525-4-1

DOI

10.31857/S60000525-4-1

Publication type

Article

Status

Published

Authors

Stanislav Vasil'ev

Vladimir Kluchko

Volume/ Edition

Volume 38 / Issue 3

Pages

563-572

Abstract

The paper reviews the history of emergence of the reduced cost concept which is very important for economic calculations. The methodology for using this concept has been the methodology predominantly used for feasibility analysis of different technical solutions throughout almost the entire 20^th century. The originators of this methodology were two great minds of the 19^th and 20^th century, W. Thomson (Lord Kelvin) and V. G. Shukhov. They were the first to realize that, while tackling the practical engineering tasks, technical features only may not be sufficient for obtaining the best engineering solution, and to employ additional, economic data for this purpose. The mathematical formulas they used for their calculations are practically identical to the modern reduced cost formula and may be directly used for finding the optimal engineering solutions. Without these calculations, electrical power engineering and oil industry would have hardly developed at such torrid pace.

Keywords

W. Thomson (Lord Kelvin), V. G. Shukhov, reduced cost, cost-effectiveness, optimal solution, electric power transmission, oil pipeline

Date of publication

01.07.2017

Number of purchasers

Views

1195

References

GOST	Kluchko V., Vasil'ev S. THE ORIGINS OF ENGINEERING ECONOMIC CALCULATIONS: THE CONTRIBUTION OF W. THOMSON (LORD KELVIN) AND V. G. SHUKHOV TO THE FORMULATION OF THE REDUCED COST CONCEPT // Voprosy istorii estestvoznaniia i tekhniki. – 2017. – V. 38. – Issue 3 C. 563-572 .
MLA	Kluchko, Vladimir, Vasil'ev, Stanislav "THE ORIGINS OF ENGINEERING ECONOMIC CALCULATIONS: THE CONTRIBUTION OF W. THOMSON (LORD KELVIN) AND V. G. SHUKHOV TO THE FORMULATION OF THE REDUCED COST CONCEPT." Voprosy istorii estestvoznaniia i tekhniki. 38.3 (2017).:563-572.
APA	Kluchko V., Vasil'ev S. (2017). THE ORIGINS OF ENGINEERING ECONOMIC CALCULATIONS: THE CONTRIBUTION OF W. THOMSON (LORD KELVIN) AND V. G. SHUKHOV TO THE FORMULATION OF THE REDUCED COST CONCEPT. Voprosy istorii estestvoznaniia i tekhniki. vol. 38, no. 3, pp.563-572

RAS PresidiumVoprosy istorii estestvoznaniia i tekhniki

THE ORIGINS OF ENGINEERING ECONOMIC CALCULATIONS: THE CONTRIBUTION OF W. THOMSON (LORD KELVIN) AND V. G. SHUKHOV TO THE FORMULATION OF THE REDUCED COST CONCEPT

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RAS PresidiumVoprosy istorii estestvoznaniia i tekhniki

THE ORIGINS OF ENGINEERING ECONOMIC CALCULATIONS: THE CONTRIBUTION OF W. THOMSON (LORD KELVIN) AND V. G. SHUKHOV TO THE FORMULATION OF THE REDUCED COST CONCEPT

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