TDCThe TDC of satisfying the whole demand for transportation services within horizon H, including costs of an in-house transportation – the make option, and an outside transportation – the buy option (monetary units – m.u./H)
FCi(j)fixed cost of vehicle i in period j, including the ownership and utilization cost components (m.u./period of analysis)
VCi(j)variable utilization cost (operating and maintenance – O&M) of vehicle i in period j (m.u./vehicle productivity unit)
Pi(j)maximum productivity (mileage, tonnage carried, amount of loads transported) of vehicle i in period j (km, tkm, tone, m3, pallet, liter, …/period of analysis)
VUIi(j)vehicle productivity utilization index of vehicle i in period j (−)
EUROicoefficient of variable cost VCi(j) of vehicle i, representing the emission-based (the European Emission Standards or any other) road tolling (−)
  • EUROi = 1 for i  ⟨1, O⟩ (company's “own” vehicles) or i  ⟨O + 1, O + N⟩ (“new” vehicles) providing that 2009 ≤ Y + ATi/12 – AAi/12 (age threshold 1)

  • EUROi = 1.012 for i  ⟨O + 1, O + N⟩ (“new” vehicles) providing that 2005 ≤ Y + ATi/12 – AAi/12 < 2009 (age threshold 2)

  • EUROi = 1.017 for i  ⟨O + 1, O + N⟩ (“new” vehicles) providing that 2000 ≤ Y + ATi/12 – AAi/12 < 2005 (age threshold 3)

  • EUROi = 1.029 for i  ⟨O + 1, O + N⟩ (“new” vehicles) providing that Y + ATi/12 – AAi/12 < 2000 (age threshold 4)

Ycurrent calendar year, at the moment of analysis (−)
baij„binary age” of vehicle i in period j denoting if vehicle i is exploited/in a fleet in period j (value 1) or not (value 0); baij = sign(aij) (−)
acfiadditional costs factor of vehicle i (when an engine vehicle is combined with a non-engine vehicle, such as a trailer, semitrailer) (−)
TPkunit transportation market price for satisfying demand of type k (m.u./vehicle productivity unit)
UDk(j)unmet (=outsourced) demand of type k in period j (the buy option) (km, tkm, tone, m3, pallet, liter, …/period of analysis)
BO(l)budget overrun in fiscal year l; l = 1, …, J/12, …, H/12 (m.u./fiscal year)
DF(j)discount factor in period j, based on interest rate rj in period j (−)

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