Strategic cost modelling and optimisation for highway asset maintenance

Abstract

Purpose The purpose of this paper is to propose and confer a strategic cost model as a concept for good decision making for highway asset treatment in the transport industry. Design/methodology/approach The paper is based on asset performance condition and treatment renewals using a five-point performance for developing prospective treatment strategies. The strategic cost model is presented in the similitude of picturesque and its outcomes via an exploratory data analysis. Findings The results articulate the best maintenance plan for the forthcoming and future years. The strategic cost model uses the combination of the current condition band, the sample area and likely treatment cost for proposing the optimal treatment solution based on consideration of desired treatment level. Practical implications The strategic cost model is suitable for outlining the asset performance condition, treatment renewals and analytical cost optimisation. The formulated analytical cost model and developed prospective strategies enable good decision making, long-term contract negotiations and whole life cost maintenance and management. Originality/value Embracing eminent performance condition from the research area of lifecycle planning and deterioration models of a physical asset, a prospective cost strategy for asset maintenance is proposed in the study. The resultant treatment strategies using the analytical approach portray the ability that enables the adaptation of expected outcomes.