Citation

Hensher DA, Zhu W. Transp. Plann. Tech. 1994; 18(2): 131-141.

Copyright

(Copyright © 1994, Informa - Taylor and Francis Group)

DOI

10.1080/03081069408717538

PMID

unavailable

Abstract

This paper presents an approach to vehicle replacement decision making for different types of vehicles in a vehicle fleet subject to budget and average fleet age constraints. The approach overcomes some weakness of traditional methods (e.g. life cycle costing methods) that concentrate on only one type of vehicle. A 0?1 integer programming model is developed and a corresponding heuristic algorithm is proposed for vehicle replacement decision making for the whole vehicle fleet, incorporating the budget and average fleet age constraints. The calculation of annualised equivalent costs involves the residual value of a vehicle which is a function of used years and completed kilometres of the vehicle. The introduction of the residual value function eliminates the difficulty in choosing different life spans for annualised equivalent cost comparisons.