Total Cost Of Ownership Perspective Research Articles

Virtual piloting of vehicle fleets to accelerate the green transition in logistics

ABSTRACT This paper introduces a framework for virtual piloting of electrified city logistics fleets based on a digital twin simulation approach empowered by operational data and insights. It aims to facilitate the digital exploration of transition scenarios and identify solutions that fit various operational constraints. Two study scenarios focusing on urban and suburban logistics including conventional and various emerging electric vehicle technologies were developed. The virtual pilots demonstrated the abilities of the framework to assess various solutions for the studied urban locations, evaluate their emissions savings potential and support full-scale fleet planning from a total cost of ownership perspective. Augmented reality was utilized for visualization to enhance perception and foster trust in digital tools. The framework can be utilized as an economical, fair, and risk-free evaluation approach complementing physical piloting and supporting the decision-making in procurement of zero-emission fleets, ultimately accelerating their broader adoption and green transition in the logistics sector.

IEC61800-9 System Standards as a Tool to Boost the Efficiency of Electric Motor Driven Systems Worldwide

Recognition of the energy savings potential in motor driven systems has led to the development of energy efficiency testing and classification standards for motors and end-use equipment (e.g., pumps and fans) and the implementation of minimum energy performance regulations targeting them worldwide. However, these standards and regulations have been limited to components, disregarding the interaction between them. The energy savings achievable by addressing and improving the entire system are potentially much higher in relation to those achievable when considering individual components. Recently, an effort to develop standards in this regard was carried out by standardization bodies (IEC and ISO) leading to the publication of the IEC61800-9 Power Drive System standard series. The paper, in its first part, describes recent evolutions in electric motor energy-efficiency standards and in the implementation of related regulations worldwide. In the second part of the paper, using the latest energy efficiency test and classification standards, a comparative analysis of different energy-efficient motor technologies is presented. Using results from laboratory tests combined with data provided by manufacturers, different power drive systems are compared considering different operating points in two typical pumping systems. Estimated economic savings from a total cost of ownership perspective are presented.

Optimisation of photovoltaic and battery systems from the prosumer-oriented total cost of ownership perspective

BackgroundIn the context of the German energy transition, the number of domestic households covering part of their electricity consumption from their own photovoltaic system is constantly increasing. Some even use battery storage systems to store excess power for later use, which increases the degree of self-sufficiency and, according to the providers of such systems, should yield financial advantages for the so-called prosumer.MethodsWe used the Prosumer-Oriented Total Cost of Ownership method to analyse the financial possibilities for prosumers under German market conditions, and thus determined the economically optimal solution for different domestic household sizes. In order to obtain realistic results, we applied real data covering the weather (relevant for the generation of electricity), consumption patterns, investment and operating costs, prices and revenues. If behavioural aspects are set aside and pre-requirements (e.g. sufficient roof space) are met, our model provides guidance for investors and policy-makers alike.Results and conclusionsOur research shows that it is financially advantageous for all household sizes to operate the largest photovoltaic system possible for them (up to 10 kWp). By contrast, our results show that the investment in a battery storage system does not pay off even when government subsidies are taken into account. Regardless of the size of the selected battery storage system and all other influencing variables, the financial advantages of such a system do not materialise, although a battery storage system does substantially increase the self-sufficiency rate.

Linking the spare parts management with the total costs of ownership: An agenda for future research

Purpose: This manuscript explores the link between Spare Parts Management and Total Costs of Ownership or Life Cycle Costs (LCC).Design/methodology/approach: First, this work enumerates the different managerial decisions instances in spare parts management that are present during the life cycle of a physical asset. Second, we analyse how those decision instances could affect the TCO of a physical asset (from the economic point of view). Finally, we propose a conceptual framework for incorporating the spare parts management into a TCO model.Findings: The recent literature lacks discussions on the integration of spare parts management with the Total Costs of Ownership (TCO). Based in an extensive literature revision we can declare that the computation of costs related to spare parts management has been neglected by TCO models.Originality/value: The contribution of this paper is twofold. First, a literature review and identification of a series of spare parts management decision instances and its relationship with TCOs is presented in this paper. Second, a conceptual framework is suggested for linking those decisions instances to a total cost of ownership perspective. Some research questions and future research challenges are presented at the end of this work.

Are multi-car households better suited for battery electric vehicles? – Driving patterns and economics in Sweden and Germany

Battery electric vehicles (BEVs) could reduce CO2 emissions from the transport sector but their limited electric driving range diminishes their utility to users. The effect of the limited driving range can be reduced in multi-car households where users could choose between a BEV and a conventional car for long-distance travel. However, to what extent the driving patterns of different cars in a multi-car household’s suit the characteristics of a BEV needs further analysis. In this paper we analyse the probability of daily driving above a fixed threshold for conventional cars in current Swedish and German car driving data. We find second cars in multi-car households to require less adaptation and to be better suited for BEV adoption compared to first cars in multi-car households as well as to cars in single-car households. Specifically, the share of second cars that could fulfil all their driving is 20 percentage points higher compared to first cars and cars from single-car households. This result is stable against variation of driving range and of the tolerated number of days requiring adaptation. Furthermore, the range needed to cover all driving needs for about 70% of the vehicles is only 220km for second cars compared to 390km for the average car. We can further confirm that second cars have higher market viability from a total cost of ownership perspective. Here, the second cars achieve a 10 percentage points higher market share compared to first cars, and to cars in single-car households for Swedish economic conditions, while for Germany the corresponding figure is 2 percentage points. Our results are important for understanding the market viability of current and near-future BEVs.

The optimization model of the vendor selection for the joint procurement from a total cost of ownership perspective

Purpose: This paper is an attempt to establish the mathematical programming model of the vendor selection for the joint procurement from a total cost of ownership perspective. Design/methodology/approach: Fuzzy genetic algorithm is employed to solve the model, and the data set of the ball bearings purchasing problem is illustrated as a numerical analysis. Findings: According to the results, it can be seen that the performance of the optimization model is pretty good and can reduce the total costs of the procurement. Originality/value: The contribution of this paper is threefold. First, a literature review and classification of the published vendor selection models is shown in this paper. Second, a mathematical programming model of the vendor selection for the joint procurement from a total cost of ownership perspective is established. Third, an empirical study is displayed to illustrate the application of the proposed model to evaluate and identify the best vendors for ball bearing procurement, and the results show that it could reduce the total costs as much as twenty percent after the optimization.

Evaluating cloud computing services from a total cost of ownership perspective

Purpose – Start‐up companies in particular can benefit from cloud computing services, since frequently they do not operate an internal IT infrastructure. The purpose of this paper is to present a total cost of ownership (TCO) approach for cloud computing services.Design/methodology/approach – The authors applied a multi‐method approach (systematic literature review, analysis of real cloud computing services, expert interviews, case study) for the development and evaluation of a formal mathematical TCO model.Findings – It was found that decision processes in cloud computing are conducted ad hoc and lack systematic methods. The presented method raises the awareness of indirect and hidden costs in cloud computing.Research limitations/implications – Some restrictive assumptions were made. For instance, cost types that focus on an existing internal IT infrastructure were hidden. Future research can combine risk and security aspects by means of a TCO approach. Additionally, benefits management in cloud computin...

An evaluation of vendor selection models from a total cost of ownership perspective

Many different vendor selection models have been published in the purchasing literature. However there has been no systematic approach to compare the relative efficiency of the systems. In this paper we propose to use the concept of Total Cost of Ownership as a basis for comparing vendor selection models. We illustrate the comparison with a real life data set of the purchasing problem of ball bearings at Cockerill Sambre, a Belgian multinational company in the steel industry. From a Total Cost of Ownership perspective mathematical programming models outperform rating models and multiple item models generate better results than single item models for this specific case study.