IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v68y2017i8d10.1057_s41274-017-0236-1.html
   My bibliography  Save this article

Optimal fleet replacement: A case study on a Spanish urban transport fleet

Author

Listed:
  • J. Riechi

    (Federal Technological University of Paraná)

  • V. Mácian

    (Universitat Politècnica de València)

  • B. Tormos

    (Universitat Politècnica de València)

  • C. Avila

    (Federal Technological University of Paraná)

Abstract

Optimizing the average annual cost of a bus fleet has become an increasing concern in transport companies management around the world. Nowadays, there are many tools available to assist managerial decisions, and one of the most used is the cost analysis of the life cycle of an asset, known as “life cycle cost”. Characterized by performing deterministic analysis of the situation, it allows the administration to evaluate the process of fleet replacement but is limited by not contemplating certain intrinsic variations related to vehicles and for disregarding variables related to exigencies of fleet use. The main purpose of this study is to develop a combined model of support to asset management based in the association of the life cycle cost tool and the mathematical model of Monte Carlo simulation, by performing a stochastic analysis considering both age and average annual mileage for optimum vehicle replacement. The utilized method was applied in a Spanish urban transport fleet, and the results indicate that the use of the stochastic model was more effective than the use of the deterministic model.

Suggested Citation

  • J. Riechi & V. Mácian & B. Tormos & C. Avila, 2017. "Optimal fleet replacement: A case study on a Spanish urban transport fleet," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(8), pages 886-894, August.
    • Handle: RePEc:pal:jorsoc:v:68:y:2017:i:8:d:10.1057_s41274-017-0236-1
    DOI: 10.1057/s41274-017-0236-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41274-017-0236-1
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41274-017-0236-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mishra, Sabyasachee & Sharma, Sushant & Khasnabis, Snehamay & Mathew, Tom V., 2013. "Preserving an aging transit fleet: An optimal resource allocation perspective based on service life and constrained budget," Transportation Research Part A: Policy and Practice, Elsevier, vol. 47(C), pages 111-123.
    2. Zambujal-Oliveira, João & Duque, João, 2011. "Operational asset replacement strategy: A real options approach," European Journal of Operational Research, Elsevier, vol. 210(2), pages 318-325, April.
    3. Collan, Mikael & Liu, Shuhua, 2002. "Fuzzy Logic and Intelligent Agents: Towards the Next Step of Capital Budgeting Decision Support," Working Papers 398, IAMSR, Åbo Akademi.
    4. Erol, Ismail & Ferrell, William Jr., 2003. "A methodology for selection problems with multiple, conflicting objectives and both qualitative and quantitative criteria," International Journal of Production Economics, Elsevier, vol. 86(3), pages 187-199, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Yan-Lai & Tang, Jia-Fu & Chin, Kwai-Sang & Jiang, Yu-Shi & Han, Yi & Pu, Yun, 2011. "Estimating the final priority ratings of engineering characteristics in mature-period product improvement by MDBA and AHP," International Journal of Production Economics, Elsevier, vol. 131(2), pages 575-586, June.
    2. Pokharel, Shaligram, 2008. "A two objective model for decision making in a supply chain," International Journal of Production Economics, Elsevier, vol. 111(2), pages 378-388, February.
    3. Iranmanesh, Hossein & Thomson, Vince, 2008. "Competitive advantage by adjusting design characteristics to satisfy cost targets," International Journal of Production Economics, Elsevier, vol. 115(1), pages 64-71, September.
    4. Adkins, Roger & Paxson, Dean, 2017. "Replacement decisions with multiple stochastic values and depreciation," European Journal of Operational Research, Elsevier, vol. 257(1), pages 174-184.
    5. Gutiérrez, Óscar, 2020. "On the definition of the investment-uncertainty relationship," Journal of Economics and Business, Elsevier, vol. 112(C).
    6. Mengtian Cui & Yi-Cheng Zhang, 2018. "Application of Markov chain approach for multi-attributes dynamic software reliability assessment under both AHP and gray correlation methods," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 29(05), pages 1-10, May.
    7. Qiang Li & Junwei Wang & Jian Ni & Lap Keung Chu & Congdong Li, 2019. "The optimal time to make a risky investment under a permanent exit option," Journal of Intelligent Manufacturing, Springer, vol. 30(7), pages 2669-2680, October.
    8. Zambujal-Oliveira, J., 2012. "Tax competition for foreign direct investment under information uncertainty," Economic Modelling, Elsevier, vol. 29(6), pages 2269-2273.
    9. Yatsenko, Yuri & Hritonenko, Natali, 2017. "Machine replacement under evolving deterministic and stochastic costs," International Journal of Production Economics, Elsevier, vol. 193(C), pages 491-501.
    10. Nunes, Cláudia & Oliveira, Carlos & Pimentel, Rita, 2021. "Quasi-analytical solution of an investment problem with decreasing investment cost due to technological innovations," Journal of Economic Dynamics and Control, Elsevier, vol. 130(C).
    11. Carnevalli, Jose A. & Miguel, Paulo Cauchick, 2008. "Review, analysis and classification of the literature on QFD--Types of research, difficulties and benefits," International Journal of Production Economics, Elsevier, vol. 114(2), pages 737-754, August.
    12. Wei Huang & Peiqi Hu & Fu-Sheng Tsai & Yinke Liu & Yu Huang, 2022. "Smart Sales Empower Small Farmers: An Integrated Matching Method between Suppliers and Consumers Based on the Information Axiom," Sustainability, MDPI, vol. 14(24), pages 1-20, December.
    13. Yu, Ming-Miin & Chen, Li-Hsueh, 2016. "Centralized resource allocation with emission resistance in a two-stage production system: Evidence from a Taiwan’s container shipping company," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 650-671.
    14. Ngo, Huan Hoang & Shah, Rohan & Mishra, Sabyasachee, 2018. "Optimal asset management strategies for mixed transit fleet," Transportation Research Part A: Policy and Practice, Elsevier, vol. 117(C), pages 103-116.
    15. Ling-Zhong Lin, 2010. "Fuzzy multi-linguistic preferences model of service innovations at wholesale service delivery," Quality & Quantity: International Journal of Methodology, Springer, vol. 44(2), pages 217-237, February.
    16. Rossi De Mio, Ruggero, 2003. "Emotional Intelligence in Virtual and Face-to-Face Communication: A Pilot Laboratory Experiment," Working Papers 473, IAMSR, Åbo Akademi.
    17. Ling-Zhong Lin & Tsuen-Ho Hsu, 2012. "A modular fuzzy inference system approach in integrating qualitative and quantitative analysis of store image," Quality & Quantity: International Journal of Methodology, Springer, vol. 46(6), pages 1847-1864, October.
    18. Amid, A. & Ghodsypour, S.H. & O'Brien, C., 2011. "A weighted max-min model for fuzzy multi-objective supplier selection in a supply chain," International Journal of Production Economics, Elsevier, vol. 131(1), pages 139-145, May.
    19. Adkins, Roger & Paxson, Dean, 2013. "The effect of tax depreciation on the stochastic replacement policy," European Journal of Operational Research, Elsevier, vol. 229(1), pages 155-164.
    20. Dias, Luis & Leitão, Armando & Guimarães, Luis, 2021. "Resource definition and allocation for a multi-asset portfolio with heterogeneous degradation," Reliability Engineering and System Safety, Elsevier, vol. 213(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorsoc:v:68:y:2017:i:8:d:10.1057_s41274-017-0236-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.