Multicriteria Fleet Evaluation and Replacement Policy

Abstract

The efficient management of companies fixed assets has become a key issue to ensure stability on highly competitive markets. In urban transportation companies, these fixed assets represent a major share of the companys property and impact on the service level. This demands an efficient policy to evaluate fleet performance and replacement. This paper proposes a methodology for fleet evaluation and replacement by integrating economic and non-economic criteria. Economic aspects are evaluated by means of economic indices and cash flow of costs associated to acquisition and maintenance. Non-economic aspects are evaluated by strategic and operational attributes, and rely on multicriteria analysis tools. The proposed methodology allows performance comparison between current and alternative buses, enabling asset monitoring and assuring efficient service level. The methodology is illustrated in an urban public transportation company.