AbstractThis paper describes a case study of the reorganization of a municipal bus undertaking. The terms of reference were to consider reorganizing the route structure, to advise on frequencies to operate on the chosen routes, to compile timetables, and to design bus schedules so that the recommended system could be implemented with the minimum number of active buses. Theoretically, all of these variables can interact and one global model should be used to optimize the entire system simultaneously. In practice, the components of this problem had to be uncoupled and tackled separately. An heuristic model designed to provide a "good" route network was developed. Service frequencies were allocated to routes so that a measure of service to passengers was maximized. Bus timetables were compiled using conventional methods and a linear programming model used to assign individual buses to journeys. A new scheme based on the recommendations of the study has been implemented. It is expected that it will reduce the annual operating deficit by [pound]35,000 without appreciably decreasing the overall level of service offered.