Improving the Economic Logic Underlying Replacement Age Decisions for Municipal Garbage Trucks: Case Study
作者:
RichardH. Bernhard,
期刊:
The Engineering Economist
(Taylor Available online 1990)
卷期:
Volume 35,
issue 2
页码: 129-147
ISSN:0013-791X
年代: 1990
DOI:10.1080/00137919008903010
出版商: Taylor & Francis Group
数据来源: Taylor
摘要:
As a garbage truck ages, its maintenance and repair costs increase, and its availability for service decreases. A large city's decision support system tracks this decline pattern for each truck and specifies a replacement age for it. But that system is shown here to be based upon a flawed formula which will, inevitably, keep any poorer than average truck too long and replace any better than average truck too soon. An alternative, economically—sound base is proposed for this and similar systems. Methodology for computing the excess cost caused by using the present system's non—optimal recommendations is developed and illustrated.
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