CREATION AND USE OF A VEHICLE REPLACMENT MODEL

     A major problem with managing a fleet of vehicles is to know when to replace any given vehicle or vehicles. The initial cost says that when a vehicle is broken, don't replace it, but fix it. But as the miles and the years pass, the costs of maintaining a vehicle can rise above that of amortizing an initial purchase expense. This paper addresses the question, "When is the best time to sell an old vehicle and replace it with a new one?"
August 5, 1972

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