Logforum. 2014. 10(2), article 9, 205-212;
STRATEGIC VEHICLE FLEET MANAGEMENT - THE MAKE OR BUY PROBLEM
Adam Redmer
Poznan University of Technology, Poznan, Poland
Background: Fleets constitute the most important production means in transportation. Their appropriate management is crucial for all companies having transportation duties. The paper is the first one of a series of three papers that the author dedicates to the strategic vehicle fleet management topic.
Methods: The paper discusses ways of fulfilling company's transportation needs (MAKE-or-BUY problem). It means
the choice between using company's own and outside fleet (buying transportation services in a market). The essence of the MAKE-or-BUY problem lies in a time dependency, a seasonal nature of transportation needs. It leads to the MAKE-and-BUY solutions including utilization of both in-house and outside fleets. In the paper an original mathematical model
(an optimization method) allowing for the MAKE-and-BUY analysis is proposed.
Results: An application of the proposed optimization method in a real-life decision situation (the case study) within
the Polish environment and the obtained solution are presented. The solution shows a low economic justification
for using the MAKE option in practice. Especially when a fleet composed of brand new vehicles is considered.
Conclusions: The paper will be continued in two further papers dedicated to strategic vehicle fleet management problems including fleet sizing / composition and fleet replacement.
Keywords: management, optimization, fleet, vehicle, transport, make-or-buy
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Streszczenie w jezyku polskim.
Zusammenfassung in Deutsch.
MLA | Redmer, Adam. "Strategic vehicle fleet management - the make or buy problem." Logforum 10.2 (2014): 9. |
APA | Adam Redmer (2014). Strategic vehicle fleet management - the make or buy problem. Logforum 10 (2), 9. |
ISO 690 | REDMER, Adam. Strategic vehicle fleet management - the make or buy problem. Logforum, 2014, 10.2: 9. |