Renewal of handling and storage equipment in wholesale company

This paper presents a use of methodology for renewing handling and storage equipment in a wholesale company. It is based on equipment maintenance, downtime and possession costs. With the analysis performed,, it was possible to make some suggestions for an optimal economic point for pallets replacement. The methodology is based on mathematical and economic principles in order to provide the organization with an increase in productivity and costs reduction for handling and storage equipment. As a result of the use of methodology, the conclusion that it was possible to consider that this point is obtained when the total annual cost is equal to the average total cost was reached. Therefore, the equilibrium point is achieved when the equipment usage time is six years.