MANAGING THE ECONOMIC REPLACEMENT OF AN OPERATIONAL VEHICLES: A HEURISTIC DECISION MODEL

Abstract
A heuristic decision model for the replacement of an operational vehicle was developed. The proposed model is based on analysingan economic measures incorporating the most important factors such as: operation and maintenance costs, salvage values, depreciation, cost of capital, and most importantly, unavailability costs to reflect the hidden off-road vehicle costs. Parameterization of life-cycle costs, classification of existing vehicles, and vehicle priority factors were demonstrated in a case study for the Royal Air Force vehicles fleet. It is worth mentioning that the proposed heuristic is a beneficial tool in replacement decision and in making trade-off analysis among viable replacement strategies.

Authors
Mohammed Shurrab1, Ghaleb Abbasi2, Marwan Al-Taweel3
Kyushu University, Japan1, University of Jordan, Jordan2, The Royal Jordanian Air Force, Jordan3

Keywords
Replacement Analysis, Operational Vehicles, Economic Analysis, Trade-off Analysis
Published By :
ICTACT
Published In :
ICTACT Journal on Management Studies
( Volume: 2 , Issue: 2 )
Date of Publication :
May 2016

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