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A risk management system for sustainable fleet replacement

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  • Ansaripoor, Amir H.
  • Oliveira, Fernando S.
  • Liret, Anne

Abstract

This article analyzes the fleet management problem faced by a firm when deciding which vehicles to add to its fleet. Such a decision depends not only on the expected mileage and tasks to be assigned to the vehicle but also on the evolution of fuel and CO2 emission prices and on fuel efficiency. This article contributes to the literature on fleet replacement and sustainable operations by proposing a general decision support system for the fleet replacement problem using stochastic programming and conditional value at risk (CVaR) to account for uncertainty in the decision process. The article analyzes how the CVaR associated with different types of vehicle is affected by the parameters in the model by reporting on the results of a real-world case study.

Suggested Citation

  • Ansaripoor, Amir H. & Oliveira, Fernando S. & Liret, Anne, 2014. "A risk management system for sustainable fleet replacement," European Journal of Operational Research, Elsevier, vol. 237(2), pages 701-712.
    • Handle: RePEc:eee:ejores:v:237:y:2014:i:2:p:701-712
    DOI: 10.1016/j.ejor.2014.02.006
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    2. Ansaripoor, Amir H. & Oliveira, Fernando S., 2018. "Flexible lease contracts in the fleet replacement problem with alternative fuel vehicles: A real-options approach," European Journal of Operational Research, Elsevier, vol. 266(1), pages 316-327.
    3. Adkins, Roger & Paxson, Dean, 2017. "Replacement decisions with multiple stochastic values and depreciation," European Journal of Operational Research, Elsevier, vol. 257(1), pages 174-184.
    4. Marko Stokic & Davor Vujanovic & Dragan Sekulic, 2020. "A New Comprehensive Approach for Efficient Road Vehicle Procurement Using Hybrid DANP-TOPSIS Method," Sustainability, MDPI, vol. 12(10), pages 1-16, May.
    5. Mitra, Sovan & Karathanasopoulos, Andreas & Sermpinis, Georgios & Dunis, Christian & Hood, John, 2015. "Operational risk: Emerging markets, sectors and measurement," European Journal of Operational Research, Elsevier, vol. 241(1), pages 122-132.

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