The article presents a method for determining the maximum vehicle repair cost as a function of its mileage. According to the adopted cost-effectiveness criterion for repairs, this cost should not exceed the current value of the vehicle. To determine the current value of the vehicle, the concept of its depreciation (loss of value) was used, which was determined based on the vehicle’s reliability characteristics. The method for estimating the maximum vehicle repair cost presented in the article is illustrated with a numerical example.The application of an appropriate vehicle repair criterion is an essential element of its proper operation. It seems obvious that an economically justified vehicle repair should only take place if the cost of repairing the damaged vehicle does not exceed its current value. Otherwise, the repair is not economically justified.
Diagnosing the damage and estimating the repair costs will be performed by the vehicle service unit, while the decision to carry out the repair or to abandon it must be made by the vehicle user/owner.
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The article contains 8977 characters.
Source: Logistyka Magazine 3/2011