EQUIPMENT REPLACEMENT OPTIMIZATION October 2011
Technical Report Documentation Page 1. Report No. 2. Government Accession No. 3. Recipient's Catalog No. FHWA/TX-11/0-6412-1 4. Title and Subtitle 5. Report Date EQUIPMENT REPLACEMENT OPTIMIZATION October 2011 6. Performing Organization Code 7. Author(s) 8. Performing Organization Report No. UT Tyler: Wei Fan, Leonard Brown, Casey Patterson, Mike Winkler, Justin 0-6412-1 Schminkey, Kevin Western, Jason McQuigg, Heather Tilley CTR: Randy Machemehl, Katherine Kortum, Mason Gemar 9. Performing Organization Name and Address 10. Work Unit No. (TRAIS) College of Engineering and Computer Science The University of Texas at Tyler 11. Contract or Grant No. 3900 University Boulevard 0-6412 Tyler, TX 75799 Center for Transportation Research The University of Texas at Austin 1616 Guadalupe, Suite 4.202 Austin, TX 78701 12. Sponsoring Agency Name and Address 13. Type of Report and Period Covered Texas Department of Transportation Technical Report: Research and Technology Implementation Office September 2009 – August 2011 P.O. Box 5080 14. Sponsoring Agency Code Austin, Texas 78763-5080 15. Supplementary Notes Project performed in cooperation with the Texas Department of Transportation and the Federal Highway Administration. Project Title: Equipment Replacement Optimization 16. Abstract TxDOT has a fleet value of approximately $500,000,000 with an annual turnover of about $50,000,000. Substantial cost savings with fleet management has been documented in the management science literature. For example, a 1983 Interfaces article discussed how Phillips Petroleum saved $90,000 annually by implementing an improved system for a fleet of 5300 vehicles. Scaling up to the TxDOT fleet, the corresponding savings would be around $350,000 in 2008 dollars.
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