A VEHICLE REPLACEMENT POLICY IN A HEAVY TRANSPORT FLEET

A vehicle replacement model has been proposed based on the annual vehi cle profit. The vehicle is replaced if its expected profit is less tha n the profit limit obtained for that age under consideration. The mode l has been applied to a case in which old data covering ten years is k nown. It showed that the company policy correlates with the model resu lts under the condition that the company replaces the non profitable v ehicles. A sensitivity test is also presented in the study.