O.R. in the Company Car Fleet: When Simple is Efficient

Abstract

The management of a large fleet of company vehicles represents a significant administrative activity, particularly when the company is a motor vehicle manufacturer and the fleet consists of its own products. The approach taken by the Operational Research Group was to cross departmental boundaries to smooth vehicle ordering, reduce inventories of vehicles awaiting delivery and optimize resale values. The method steers between two potential pitfalls: that of ‘optimizing’ one affected department to the detriment of others, and that of developing sophisticated scheduling and forecasting algorithms which the users would not understand and therefore not trust.

Keywords:

• inventory
• order smoothing
• pre-delivery inspection
• taxation

^*Now with Allied Assurance p.l.c.

^†Now with R.B.C. Systems, London.

An earlier version of this paper was presented at the O.R. Society National Conference, University of Warwick, September, 1983.

^*Now with Allied Assurance p.l.c.

^†Now with R.B.C. Systems, London.

An earlier version of this paper was presented at the O.R. Society National Conference, University of Warwick, September, 1983.