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Fleet Renewal with Electric Vehicles at La Poste

Author

Listed:
  • Paul R. Kleindorfer

    (INSEAD, 77305 Fontainebleau, France)

  • Andrei Neboian

    (WHU–Otto Beisheim School of Management, 56179 Vallendar, Germany)

  • Alain Roset

    (La Poste, 75015 Paris, France)

  • Stefan Spinler

    (WHU–Otto Beisheim School of Management, 56179 Vallendar, Germany)

Abstract

We provide a decision model for La Poste, the French national postal operator, to address its adoption of electric vehicles (EVs) for mail and parcel distribution. Two competing technologies are available—internal combustion vehicles (ICVs) and EVs. We consider uncertainty about future fuel price and future EV battery costs. Within this framework, we derive the optimal timing of EV adoption and sensitivities to key model parameters. We evaluate the total cost of fleet renewal over a 15-year horizon and the value of flexibility stemming from technology and timing options. This allows us to formulate an optimal strategy for EV adoption for La Poste and to support negotiations with major stakeholders, including energy companies and EV manufacturers.

Suggested Citation

  • Paul R. Kleindorfer & Andrei Neboian & Alain Roset & Stefan Spinler, 2012. "Fleet Renewal with Electric Vehicles at La Poste," Interfaces, INFORMS, vol. 42(5), pages 465-477, October.
    • Handle: RePEc:inm:orinte:v:42:y:2012:i:5:p:465-477
    DOI: 10.1287/inte.1120.0640
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    References listed on IDEAS

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    3. Bhavani Shanker Uppari & Ioana Popescu & Serguei Netessine, 2019. "Selling Off-Grid Light to Liquidity-Constrained Consumers," Manufacturing & Service Operations Management, INFORMS, vol. 21(2), pages 308-326, May.
    4. Ansaripoor, Amir H. & Oliveira, Fernando S., 2018. "Flexible lease contracts in the fleet replacement problem with alternative fuel vehicles: A real-options approach," European Journal of Operational Research, Elsevier, vol. 266(1), pages 316-327.
    5. Alp, Osman & Tan, Tarkan & Udenio, Maximiliano, 2022. "Transitioning to sustainable freight transportation by integrating fleet replacement and charging infrastructure decisions," Omega, Elsevier, vol. 109(C).
    6. Goeke, Dominik & Schneider, Michael, 2015. "Routing a mixed fleet of electric and conventional vehicles," European Journal of Operational Research, Elsevier, vol. 245(1), pages 81-99.
    7. Michael Schneider & Andreas Stenger & Dominik Goeke, 2014. "The Electric Vehicle-Routing Problem with Time Windows and Recharging Stations," Transportation Science, INFORMS, vol. 48(4), pages 500-520, November.
    8. Christian Mandl & Selvaprabu Nadarajah & Stefan Minner & Srinagesh Gavirneni, 2022. "Data‐driven storage operations: Cross‐commodity backtest and structured policies," Production and Operations Management, Production and Operations Management Society, vol. 31(6), pages 2438-2456, June.
    9. Wenbin Wang & Mark E. Ferguson & Shanshan Hu & Gilvan C. Souza, 2013. "Dynamic Capacity Investment with Two Competing Technologies," Manufacturing & Service Operations Management, INFORMS, vol. 15(4), pages 616-629, October.
    10. Goeke, D. & Schneider, M., 2015. "Routing a Mixed Fleet of Electric and Conventional Vehicles," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 65939, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    11. Montoya, Alejandro & Guéret, Christelle & Mendoza, Jorge E. & Villegas, Juan G., 2017. "The electric vehicle routing problem with nonlinear charging function," Transportation Research Part B: Methodological, Elsevier, vol. 103(C), pages 87-110.
    12. Gao, Yongling & Leng, Mingming & Zhang, Yaping & Liang, Liping, 2022. "Incentivizing the adoption of electric vehicles in city logistics: Pricing, driving range, and usage decisions under time window policies," International Journal of Production Economics, Elsevier, vol. 245(C).
    13. Kuppusamy, Saravanan & Magazine, Michael J. & Rao, Uday, 2017. "Electric vehicle adoption decisions in a fleet environment," European Journal of Operational Research, Elsevier, vol. 262(1), pages 123-135.
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    15. A. Gürhan Kök & Kevin Shang & Şafak Yücel, 2018. "Impact of Electricity Pricing Policies on Renewable Energy Investments and Carbon Emissions," Management Science, INFORMS, vol. 64(1), pages 131-148, January.

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