12th Annual International Conference on Industrial Engineering and Operations Management

Total Cost Of Ownership Framework for Procurement of Electric Buses in Public Transportation

Nuri Cihat Onat & Mansoor Jahangir Ahmed Khan
Publisher: IEOM Society International
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Track: Sustainable in SCM / Green Supply Chain
Abstract

A study conducted on a public transport management system to deliver the best service with a defined standard of
service from state regulatory bodies by utilizing & managing a high volume of vehicles in the most efficient,
productive, and cost-effective way to minimize cost and as well as air pollution, carbon emissions from the
transportation sector. A total cost of ownership framework is developed for evaluation of different alternative fuel bus
options (Diesel, Electric and CNG) based on real-world driving conditions. In addition, Electric, CNG, and diesel
buses are compared from the life cycle and Total Cost of Ownership (TCO). According to the results, it was found
that electric bus TCO is less than the diesel and CNG buses i.e. electric bus TCO cost is 15% less than the diesel bus
and in the case of CNG, it is 5% less over a period of 10 years use. The proposed framework provides a quantitative
basis for a sustainable fleet management approach for public bus service providers.


Keywords
Total cost of ownership, public service operation, decision-making tool, sustainable transportation, and Life Cycle
Cost Analysis.

Published in: 12th Annual International Conference on Industrial Engineering and Operations Management, Istanbul, Turkey

Publisher: IEOM Society International
Date of Conference: March 7-10, 2022

ISBN: 978-1-7923-6131-9
ISSN/E-ISSN: 2169-8767