The goals of this study were to determine, for six equipment classes (three on road and three off road), a methodology for evaluating aging (or depreciation), disposal points, and overall utilization. The primary deliverable was development of a decision model which would help reduce cost, improve the age of the fleet and its readiness to serve the public, and improve overall utilization. The study identified an approach to segment or tier equipment utilization based on usage purpose so that specific needs and supporting equipment could be more readily identified by management. The study examined salvage values and identified trends in market value decline based on historical records. Using internal cost information, the study identifies trends in cost of operation and use as equipment ages. This information was integrated into an optimal economic life model based on equivalent uniform annual cost to identify the optimal disposal point for the six classes. The analytical models developed in the study provide a foundation for long term analysis of fleet size and the cost effectiveness of disposal points.
