THE DEVELOPMENT OF A FLEET VEHICLE REPLACEMENT POLICY FOR A FEDERAL GOVERNMENT CONTRACTOR 109 THE DEVELOPMENT OF A FLEET VEHICLE by ProQuest

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         THE DEVELOPMENT OF A FLEET VEHICLE
          REPLACEMENT POLICY FOR A FEDERAL
              GOVERNMENT CONTRACTOR
                       Sharad Maheshwari, Hampton University
                       Sid Howard Credle, Hampton University

                                      CASE DESCRIPTION

         This case presents a scenario to develop an equipment replacement policy for a large federal
government contractor. This contractor serves as a facility maintenance manager for a federal
government research and development organization. The maintenance company has a medium size
fleet of cars, vans, pickup trucks and specialty vehicles. Currently, there is no vehicle replacement
policy in the company. However, the company keeps some maintenance records of the vehicles that
can be used in the development of a vehicle replacement policy. The objective of this case is to
illustrate the basics of equipment replacement decision making and the practical application of the
probability and statistics. The case is appropriate for use in a production/operations management,
engineering, economics, business statistics or managerial accounting courses. The case should take
no more than one hour of class lecture and two hours of preparation and research time from
students. Total student time should not be more than four hours including research time.

                                        CASE SYNOPSIS

        The case is a simple but realistic application of business statistics models in the area of
operations management and managerial accounting. It is an ideal case at the undergraduate level
where students need practical application of statistical concepts. It superimposes generally difficult
subject matter of statistics with easy to understand concepts of the operating cost of a small vehicle
fleet. It will allow students to integrate simple regre
								
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