Track: Engineering Economy

Abstract

One of the most important standard operating procedures for any organization is running the business in a cost-effective manner. Normally during that business, workforces, equipment, fleet, etc are considered to be replaced after particular period of time, which depends on the operational situation. In this paper, replacement of grass fleet is studied in one of the universities.

Equivalent Uniform Annual Cost (EAUC) method is used for that purpose for three years period of time. The parameters considered for the said fleet are its operation cost, maintenance cost, procurement cost, interest rate, resale value at the end of each financial year, depreciation, interest on procurement cost, and the total marginal cost. EAUC has been calculated for each year and should attracting output for the operators about the time they can replace the fleet in discussion.