Evaluation of the effectiveness of integrating electric vehicles into fleet operations

Authors

DOI:

https://doi.org/10.61089/aot2025.t4vnd385

Keywords:

low-emission vehicles, fleet management, fleet composition problem, environmental pollution, modelling, fleet electrification

Abstract

This article presents an approach to decision-making for the implementation of electric passenger cars in enterprise fleets, considering both economic and environmental factors. The literature review is focused on fleet composition and the impacts of technological change. The paper examines practical aspects of introducing alternatively powered vehicles into corporate fleets and proposes a model for optimal fleet composition. The final section provides a case study on the adoption of electric vehicles (BEV, HEV) in selected fleets in Poland. The conclusion highlights key opportunities and constraints associated with integrating electric vehicles into fleet operations. The model proposed in the article incorporates Total Cost Ownership (TCO) of fleet and environmental criteria, as well as various forms of vehicle financing and the resulting limitations on vehicle mileage and duration of use, together with budget constraints and the discounting of cash flows over time. Importantly, vehicle depreciation and several other parameters are treated as nonlinear functions of multiple variables. As the research presented in the paper demonstrates, the introduction of electric vehicles into fleets is currently unprofitable in Poland, particularly for short-term use in company car fleets. The persistently higher purchase prices of such vehicles compared with internal combustion vehicles of a similar standard, combined with their substantially higher depreciation during the initial period of use, are not offset by lower operating costs. Electric vehicles gain an advantage only when environmental objectives are assigned a sufficiently high weighting. At the same time, over sufficiently long operating periods, the economic performance of electric vehicles may prove more favourable, although there remains considerable market uncertainty concerning price formation and the residual values of these vehicles.

References

1. Ansaripoor, A.H., & Oliveira, F.S. (2018). Flexible lease contracts in the fleet replacement problem with alternative fuel vehicles: A real-options approach. European Journal of Operational Research, 266, 316–327. https://doi.org/10.1016/j.ejor.2017.09.010.

2. Ansaripoor, A.H., Oliveira, F.S., & Liret, A. (2014). A risk management system for sustainable fleet replacement. European Journal of Operational Research, 237(2), 701–712. https://doi.org/10.1016/j.ejor.2014.02.006.

3. Bakker, J., Alvarez, J.L., Veldman, J., & Buijs, P. (2025). Strategic fleet replacement for the electrification of heavy-duty road freight transportation. Applied Energy, 391, 125935, https://doi.org/10.1016/j.apenergy.2025.125935.

4. Bean, J.C., Lohmann, J.R., & Smith, R.L. (1994). Equipment replacement under technological change. Naval Research Logistics, 41(1), 117-128.

5. Bieda, B., Książek, R., Gdowska, K., & Korcyl, A. (2023). Strategic Decision-Making for Multi-Period Fleet Transition Towards Zero-Emission: Preliminary Study. Sustainability, 15, 16690. https://doi.org/10.3390/su152416690.

6. Büyüktahtakın, I.E., & Hartman, J.C. (2016). A mixed-integer programming approach to the parallel replacement problem under technological change. International Journal of Production Research, 54(3), 680–695. https://doi.org/10.1080/00207543.2015.1030470.

7. Chand, S., McClurg, T., & Ward, J. (2000). A model for parallel machine replacement with capacity expansion. European Journal of Operational Research, 121(3), 519–531. https://doi.org/10.1016/S0377-2217(99)00052-1.

8. Ellram, L.M. (2002). Total Cost of Ownership. In: Hahn D., Kaufmann L. (ed.). Handbuch Industrielles Beschaffungsmanagement. Wiesbaden: Gabler Verlag.

9. Enogwe, S.U., Obiora-Ilouno, H.O., Odum, J.O., & Nwokocha, P.C. (2025). Optimal vehicle replacement policy for GUO MOTORS: a data-driven analysis of fleet management. IORMS Journal of Operational Research and Management Science, 3(1), 53–64. https://www.journal.iorms.org.ng/index.php/ijorms/article/view/13/15.

10. Evans, J.J. (1989). Replacement, obsolescence and modifications of ships, Maritime Policy & Management, The flagship journal of international shipping and port research, 16(3), 223-231. https://doi.org/10.1080/03088838900000061.

11. Ghiani, G., Laporte, G., & Musmanno, R. (2004). Introduction to Logistics Systems Planning and Control. England, West Sussex: John Wiley & Sons, Ltd.

12. Gkochari, C.C. (2015). Optimal investment timing in the dry bulk shipping sector. Transportation Research Part E: Logistics and Transportation Review, 79, 102–109. https://doi.org/10.1016/j.tre.2015.02.018.

13. González, G.A., Folleco, A.V., & Sarache, W.A. (2005). Reemplazamiento de equipo industrial: una aplicación multicriterio. Scientia et Technica, 3(29), 57–61.

14. Hartman, J.C. (2000). The parallel replacement problem with demand and capital budgeting constraints. Naval Research Logistics, 47(1), 40–56. https://doi.org/10.1002/(SICI)1520-6750(200002)47:1<40::AID-NAV3>3.0.CO;2-T.

15. Hartman, J.C. (2001). An economic replacement model with probabilistic asset utilization. IIE Transactions, 33(9), 717–727. https://doi.org/10.1080/07408170108936868.

16. Hartman, J.C. (2004). Multiple asset replacement analysis under variable utilization and stochastic demand. European Journal of Operational Research, 159(1), 145–165. https://doi.org/10.1016/S0377-2217(03)00397-7.

17. Hartman, J.C., & Ban, J. (2002). The series-parallel replacement problem. Robotics and Computer Integrated Manufacturing, 18, 215–221. https://doi.org/10.1016/S0736-5845(02)00012-1.

18. Hartman, J.C., & Murphy, A. (2006). Finite-horizon equipment replacement analysis. IIE Transactions, 38(5), 409-419. https://doi.org/10.1080/07408170500380054.

19. Hritonenko, N., & Yatsenko, Y. (2012). Fleet replacement under technological shocks. Annals of Operations Research, 196, 311–331. https://doi.org/10.1007/s10479-012-1076-7.

20. Jacyna, M. (2022). Wspomaganie decyzji w praktyce inżynierskiej. Metody, Algorytmy, Przykłady. Poland, Warsaw: Wydawnictwo Naukowe PWN.

21. Jacyna, M., & Wasiak, M. (2015). Multicriteria Decision Support in Designing Transport Systems. [in] Mikulski J. (ed.). Tools of Transport Telematics. Communications in Computer and Information Science, 531, 11–23. https://doi.org/10.1007/978-3-319-24577-5_2.

22. Jacyna, M., Żochowska, R., Sobota, A., & Wasiak, M. (2021). Scenario Analyses of Exhaust Emissions Reduction through the Introduction of Electric Vehicles into the City. Energies, 14(7). https://doi.org/10.3390/en14072030.

23. Jeon, J.W., & Yeo, G.T. (2017). Study of the Optimal Timing of Container Ship Orders Considering the Uncertain Shipping Environment. The Asian Journal of Shipping and Logistics, 33(2), 85–93. https://doi.org/10.1016/j.ajsl.2017.06.006.

24. Jinxing, S., Qinxin, L., Changjiang, Z., Kun, L., & Changxi, M. (2024). Bus fleet replacement optimization considering life-cycle carbon emissions and total cost of ownership. Journal of Southeast University (English Edition), 40(2), 185–192, https://doi.org/10.3969/j.issn.1003-7985.2024.02.009.

25. Keles, P., & Hartman, J.C. (2004). Case study: bus fleet replacement. The Engineering Economist, 49(3), 253–278. https://doi.org/10.1080/00137910490498951.

26. Kirby, D. (1959). Is your fleet the right size?. Journal of the Operational Research Society, 10, 252. https://doi.org/10.1057/jors.1959.25.

27. Kleindorfer, P.R., Neboian, A., Roset, A., & Spinler, S. (2012). Fleet Renewal with Electric Vehicles at La Poste. INFORMS Journal on Applied Analytics, 42(5), 421–516. https://doi.org/10.1287/inte.1120.0640.

28. Loxton, R., Lin, Q., & Teo, K.L. (2012). A stochastic fleet composition problem, Computers & Operations Research, 39(12), 3177-3184. https://doi.org/10.1016/j.cor.2012.04.004.

29. Malo, D. M., Soulama, S., & Naon, B. (2025). Optimizing the economic replacement time for open-pit mining haul trucks: an advanced case study. Life Cycle Reliability and Safety Engineering, 1-22 https://doi.org/10.1007/s41872-025-00354-1.

30. Mardaneh, E., Lin, Q., & Loxton, R. (2016). A heuristic algorithm for optimal fleet composition with vehicle routing considerations, Optimization Methods and Software, 31(2), 272–289. https://doi.org/10.1080/10556788.2015.1062890.

31. Mazur, B. (2023). Metoda kompozycji floty samochodowej dla przedsiębiorstw najmu krótkoterminowego z uwzględnieniem całkowitych kosztów posiadania (rozprawa doktorska). Politechnika Warszawska, Poland, Warsaw.

32. Mazur, B., & Wasiak, M. (2018). TCO - Total Cost of Ownership as a supporting tool of choosing the car fleet in rental company. WUT Journal of Transportation Engineering; 123, 95–109. https://doi.org/10.5604/01.3001.0013.7465.

33. Noorbakhsh, A., Boehl, C., & Brown, K. (2019). Assessing Total Cost of Ownership: Effective Asset Management Along the Supply Chain. In: Mathew J., Lim C., Ma L., Sands D., Cholette M., & Borghesani P. (ed.): Asset Intelligence through Integration and Interoperability and Contemporary Vibration Engineering Technologies. Lecture Notes in Mechanical Engineering. Cham: Springer.

34. Palmer, K., Wadud, Z., Tate, J.E., & Nellthorp, J. (2018). Total Cost of Ownership and Market Share for Hybrid and Electric Vehicles in the UK, US and Japan. Applied Energy, 209, 108–119. https://doi.org/10.1016/j.apenergy.2017.10.089.

35. Parthanadee, P., Buddhakulsomsiri, J., & Charnsethikul, P. (2012). A study of replacement rules for a parallel fleet replacement problem based on user preference utilization pattern and alternative fuel considerations. Computers & Industrial Engineering, 63(1), 46–57. https://doi.org/10.1016/j.cie.2012.01.011.

36. Redmer, A. (2016). Strategic vehicle fleet management – the replacement problem. LogForum, 12(1), 17–24. https://doi.org/10.17270/J.LOG.2016.1.2.

37. Redmer, A. (2022). Strategic vehicle fleet management–a joint solution of make-or-buy, composition and replacement problems. Journal of Quality in Maintenance Engineering, 28(2), 327–349, https://doi.org/10.1108/JQME-04-2020-0026.

38. Ribeiro, P.J.G., & Mendes, J.F.G. (2022). Public Transport Decarbonization via Urban Bus Fleet Replacement in Portugal. Energies, 15, 4286. https://doi.org/10.3390/en15124286.

39. Roy, B., & Bouyssau, D. (1993). Aide Multicritère à la Décision: Méthodes et Cas, Paris: Economica.

40. Rust, J. (1987). Optimal Replacement of GMC Bus Engines: An Empirical Model of Harold Zurcher, Econometrica, 55(5), 999–1033. https://doi.org/10.2307/1911259.

41. Sarache Castro, W.A., Castrillón, O.D., Gonzales, G., & Viveros Folleco, A. (2009). A multi-criteria application for an equipment replacement decision, Ingeniería y Desarrollo. 25, 80-98.

42. Semenov, I., Jacyna, M., Auguściak I. & Wasiak, M. (2025). Hybrid Human–AI Collaboration for Optimized Fuel Delivery Management, Energies, 18(19), 5203, https://doi.org/10.3390/en18195203.

43. Tang, C., Li, X., Ceder, A., & Wang, X. (2021). Public Transport Fleet Replacement Optimization Using Multi-Type Battery-Powered Electric Buses. Transportation Research Record, 2675(12), 1422–1431. https://doi.org/10.1177/03611981211027157.

44. Wang, W., Ferguson, M.E., Hu, S., & Souza, G.C. (2013). Dynamic Capacity Investment with Two Competing Technologies. Manufacturing & Service Operations Management, 15(4), 523–700. https://doi.org/10.1287/msom.2013.0438.

45. Wasiak, M., Niculescu, A.I., Kowalski, M. (2020). A generalized method for assessing emissions from road and air transport on the example of Warsaw Chopin Airport, Archives of Civil Engineering, 66(2), 399–419, https://doi.org/10.24425/ace.2020.131817.

46. Zamasz, K., Stęchły, J., Komorowska, A., & Kaszyński, P. (2021). The Impact of Fleet Electrification on Carbon Emissions: A Case Study from Poland. Energies, 14, 6595. https://doi.org/10.3390/en14206595.

47. Zheng, S., & Chen, S. (2018). Fleet replacement decisions under demand and fuel price uncertainties. Transportation Research Part D. Transport and Environment, 60, 153–173. https://doi.org/10.1016/j.trd.2016.09.001.

Downloads

Published

2025-12-12

Data Availability Statement

The original data presented in this study are included in the article. Further inquiries can be directed to the corresponding authors.

Issue

Section

Original articles

How to Cite

Wasiak, M., Mazur, B., Trzaskowski, D., & Semenov, I. (2025). Evaluation of the effectiveness of integrating electric vehicles into fleet operations. Archives of Transport, 76(4), 29-49. https://doi.org/10.61089/aot2025.t4vnd385

Share

Most read articles by the same author(s)

Similar Articles

11-20 of 372

You may also start an advanced similarity search for this article.

A model for risk analysis of oil tankers

Jakub Montewka, Przemysław Krata, Floris Goerlandt, Pentti Kujala (Author)

A numerical model for impacts of left-turn non-motorized vehicles on through lane capacity metrics

Andrzej Chudzikiewicz, Juraj Gerlici, Magdalena Sowińska, Anna Stelmach, Wojciech Wawrzyński...

Decision making strategies for warehouse operations

Michał Kłodawski, Konrad Lewczuk, Ilona Jacyna-Gołda, Jolanta Żak (Author)