IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v31y2001i5p65-73.html
   My bibliography  Save this article

U S WEST Implements a Cogent Analytical Model for Optimal Vehicle Replacement

Author

Listed:
  • Dennis C. Dietz

    (Qwest Communications International, 4001 Discovery Drive, Suite 130, Boulder, Colorado 80303)

  • Paul A. Katz

    (Qwest Communications International)

Abstract

We developed and implemented a model-based replacement process for a diverse fleet of vehicles at U S WEST, a major telecommunications company (since June 2000, Qwest Communications International). The model considers relevant age-dependent factors, including annual maintenance cost, opportunity cost of downtime, depreciation, and salvage value. It assigns a replacement score to each candidate vehicle based on age, type, estimated replacement cost, and estimated maintenance cost in the next year of operation. The model then rank-orders the vehicles by score and identifies them for replacement subject to a budget constraint on fleet capital expenditure. Through implementation of the model-based process, the company expects an annual benefit of more than $13 million.

Suggested Citation

  • Dennis C. Dietz & Paul A. Katz, 2001. "U S WEST Implements a Cogent Analytical Model for Optimal Vehicle Replacement," Interfaces, INFORMS, vol. 31(5), pages 65-73, October.
    • Handle: RePEc:inm:orinte:v:31:y:2001:i:5:p:65-73
    DOI: 10.1287/inte.31.5.65.9659
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/inte.31.5.65.9659
    Download Restriction: no
    File URL: https://libkey.io/10.1287/inte.31.5.65.9659?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richard Waddell, 1983. "A Model for Equipment Replacement Decisions and Policies," Interfaces, INFORMS, vol. 13(4), pages 1-7, August.
    2. Dan Avramovich & Thomas M. Cook & Gary D. Langston & Frank Sutherland, 1982. "A Decision Support System for Fleet Management: A Linear Programming Approach," Interfaces, INFORMS, vol. 12(3), pages 1-9, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giovanni Pantuso & Kjetil Fagerholt & Stein W. Wallace, 2016. "Uncertainty in Fleet Renewal: A Case from Maritime Transportation," Transportation Science, INFORMS, vol. 50(2), pages 390-407, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orinte:v:31:y:2001:i:5:p:65-73. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.