A bus replacement model for the State Transport Company, Kumasi.

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The State Transport Company, like many service organizations, faces the problem of how long a bus should be on the road before it is replaced. The aim of this thesis is therefore to determine a schedule of disposals and replacements of the Higher bus, taking into account the revenue generated, operating cost and the salvage values, such that the total cost of these activities is minimized. Data was collected from the State Transport Company Office in Kumasi on the revenue generated, operating cost, and the salvage values on the bus with time. The problem was solved by using dynamic programming. It was found out that the company should always dispose its buses when they are two years old.
A thesis submitted To KNUST Mathematics Department in partial fulfilment of the requirements for the award of Master of Science Degree in Industrial Mathematics.