A Study of a Single-Period Model for the Parallel Fleet Replacement Problem

Abstract

This paper presents a new approach for the parallel fleet replacement problem. The problem involves determining an optimal replacement schedule for a fleet of vehicles that results in minimal total cost of owning and operating the fleet. Four main aspects including utilization patterns, O&M cost patterns, salvage value patterns and replacement policies are considered. The proposed approach is to use a single-period integer programming model instead of the multiple-period model that requires much higher computing power and data requirement. The approach is tested on a small numerical example in eight scenarios. Promising results of off-optimal percentage are obtained.