On the Application of an Economic Life Model with a Fixed Planning Horizon

Capital replacement models with finite planning horizons may be used to model replacement policies in complex operational contexts. They may also be used to investigate the cost consequences of technological change. These models are refinements of earlier economic life models, and this paper describes the application of one such model, with a fixed planning horizon, to the management of replacement for a large inhomogeneous fleet of buses. The paper also describes the behaviour of a simple fixed planning horizon model in a general context.