An algorithm for quantitative vehicle replacement and repair limitations studies was developed by the Consolidated Edison Company of New York, Inc. in early 1976. It computes; (a) whether it is less expensive to replace a vehicle or to continue using it: (b) the magnitude of cost avoidance or cost increase that would result from vehicle replacement over a projected period of time. Computations can be performed either manually or with the aid of computer systems. Simulations are performed on the basis of either cost per mile or cost per period of operation. These costs include the cost of purchase, money, maintenance, fuel and all other associated expenses. The “cost of money” can be applied with any degree of sophistication that may be required.
This algorithm is currently utilized as a planning aid by Con Edison. It has been computerized as a feature of: (a) The Con Edison Transportation Information System (“TIS”) and (b) “Vehcile Maintenance Reporting Standards” (VMRS). Further refinements of both the algorithm and computer software are being developed.