This proposed project builds on the Fleet Management Performance Monitoring project by evaluating the applicability of cumulative cost modeling techniques in developing economic models to estimate the economic life of equipment in the NCDOT fleet. Previous research to develop economic models of NCDOT equipment have relied on annual cost data for all equipment in an equipment class, which is effectively an economic snapshot of the fleet. While economic modeling based on annual costs is an accepted approach, in some cases variability within the cost data masks annual increase operating costs required to predict economic life.
Cumulative cost modeling is founded in the concept that equipment repair costs in a given year will often affect equipment operating costs in subsequent years. Thus, economic models are developed based on cumulative (or life-to-date) costs and equipment age measured in hours or miles.
Economic models for four (4) equipment classes will be developed using cumulative cost modeling techniques and the results compared to previously developed models.
The research products resulting from this project are:
- Evaluation of existing fleet cost data for use with cumulative cost modeling techniques.
- Cumulative cost economic models for four NCDOT equipment classes.
- Comparison of the economic models and economic life resulting from cumulative cost and annual cost modeling techniques
These research products will support the NCDOT Fleet Management Unit in analyzing and managing the equipment fleet.
