Vehicle replacement in government parastatals: A comparative study of major government replacement policies

Abstract

Three major Government Replacement policies in Nigeria were compared using an economic replacement model for vehicles. These policies are all practiced by the government in different parastatals following various management systems, and adopting deviant operation management policies. The policies were compared based on data collected over a ten-year period, from a non-profit making government parastatal in Nigeria. The data included repair and maintenance expenditure and the analysis of the data indicated that the correlation between vehicle accumulated repair and maintenance costs and its cumulative age in use was best described by an exponential function. The result of the comparative analysis of the policies shows that using the table discounted cost as a performance measure, the individual vehicle policy is preferred to the age of group vehicle policy, which in turn is preferred to average vehicle policy. Keywords: Vehicle, Replacement, Model, Policy [Global Jnl Mathematical Sci Vol.2(1) 2003: 37-42]