Graduate Thesis Or Dissertation

 

Impact of asset usage preferences on parallel replacement decisions Public Deposited

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  • Data from a state department of transportation fleet shows that the usage of a typical asset decreases as it ages. One possible explanation for decreasing asset usage with age is operator preference for using the newest available asset. In this research the long-term cost and replacement implications of such a "newest first" usage practice are investigated for a fleet of similar assets with a fixed replacement age (age standard). Capital constraints on replacement are not considered. Comparisons are made to a "random" usage practice that results in constant expected usage as an asset ages. For most major cost categories, the newest first usage practice results in greater or equal costs. It is also shown that asset usage and fixed replacement age are interdependent under the newest first usage practice. The implications of this are that simple approaches found in the literature to address decreasing usage with age give incorrect results.
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