Case Study: Transport Carrier Replacement Analysis

Kati Brunson, Betsy DeLee, Joshua Nachtigal, Bradley Hill and Joseph Hartman

The Engineering Economist, 2011, vol. 56, issue 4, 354-384

Abstract: Four replacement scenarios were analyzed for a vehicle fleet designed to haul sensitive packages at two different customer locations. In addition to completing an economic replacement analysis study, each option was analyzed according to availability requirements and other intangible attributes. Finally, a thorough sensitivity analysis was performed to examine the impact of reliability assumptions on both life cycle costs and the expected economic life of each option. Once all factors were analyzed, each critical input was graded and scored, leading to the final recommendation to replace the current equipment with a new technology.

Date: 2011
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DOI: 10.1080/0013791X.2011.624921

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