The organization has to have the optimal number of vehicles to perform the service level with maximum effectiveness and productiveness, meeting the direct costs or established budget, for which not having the optimal number of vehicles can have the consequences shown in chart 1:
If the organization has more vehicles than its optimal numbers, the following situations can happen with each vehicle: it is usually assigned to one driver or service, it may not be used, or it’s for personal use.
If the organization has a higher number of vehicles than the optimal, the reduction in fuel consumption costs, number of accidents, etc. would be a small amount in comparison with the cost of acquiring more vehicles and the derived consequences shown in chart 1.
This type of practice hides problem in regards of vehicle fleet management, planning, operation, control and optimization, consuming more resources than needed.
If the organization has fewer vehicles than the optimal number, the fleet’s direct costs (fixed and variables) will be less, however, the organization won’t be able to perform the adequate service level, and the fleet will be used over its capacity and scheduled hours, which risks more accidents and breakdowns than expected.
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