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An Economic Model for the Replacement and Management of Navy Vehicles.
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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The Naval Facilities Engineering Command NAVFACENGCOM Command Management Guidance for FY-84 identified the need for an alternative to the twenty year old DOD-specified vehicle replacement criteria age and mileage. This thesis identifies a model which structures the replacement decision as an examination of the economic balance between average annual costs of ownership and operation. The model is suggested for dynamic application in determining the optimal service lives of various vehicle types for fleet-wide replacement programming. It is also recommended as a tool for activity level transportation managers, since it provides a means to examine and compare the economic consequences of management policies and practices. Its practicality for this application is enhanced by the possibility that if implemented via the computer medium, it could be integrated with the electronic record keeping capability for public works transportation management currently being provided by NAVFACENGCOMs Project BEST. Keywords include Service Life, Optimal Service Life, Economic Life, Economic Model, and Administrative Use Vehicles.
APPROVED FOR PUBLIC RELEASE