SYNOPSIS The paper reports a study of the determination of an optimal replacement policy for transport fleet vehicles in the 7/8 ton load carrying capacity. Comments are made about the limitations of the constant economic life approach to replacement decisions. The concept of an Annual Maintenance Cost Limit approach is suggested and used to set replacement decisions for a fleet of 150 similar vehicles.
Get full access to this article
View all access options for this article.
References
1.
EilonS.KingJ.R.HutchinsonD.E.A study in equipment replacement, Operational Research Quarterly, Vol. 17, No. 1, (1966).
2.
HastingsN.A.J., Equipment replacement and the repair limit method, in Operational Research In Maintenance, ed. JardineA.K.S., Manchester University Press, Manchester/Barnes and Noble, New York, (1970).
3.
JardineA.K.S., Maintenance, Replacement and Reliability, Pitman, London/Wiley, New York, (1973).
4.
Income Tax and Corporation Tax.Capital Allowances on Machinery or Plant (New System). Issued by the Board of Inland Revenue. Leaflet CA1, (May 1973).
