Dynamic Programming Based Bus Replacement Policy For Metro-Mass Transit Limited-Kumasi Depot

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Recent advances in automobile replacement have made possible the deployment of several strategies aimed at minimising the total operational cost on one hand and maximising the total net profit on the other hand of an equipment in service of a given organization. This thesis looks at the various operational costs associated with running an automobile bus as a background to making a future replace or keep decision throughout a given planned horizon. Our work focuses on using dynamic programming in solving the backward profit recursive relation for an optimal replacement policy via Microsoft Excel solver implementation. This approach finds the optimal replacement policies to be replaced in every five and four years of the bus’s service life: Verband Deutscher Lokomotivindustrie (VDL) Commuter, Verband Deutscher Lokomotivindustrie (VDL) Neoplan City (2nd generation), Verband Deutscher Lokomotivindustrie (VDL) Daf and Verband Deutscher Lokomotivindustrie (VDL)Jonckheere buses should be replaced every five (5) years with Neoplan City (1st generation) bus replaced every four (4) years.
A thesis submitted to the Department of Mathematics, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfilment of the requirements for the degree of Master of Science in Industrial Mathematics, 2011