Replacement Plan Analysis for Light Vehicle at PT Freeport Indonesia Using Multi-Criteria Decision Making (MCDM)

Abstract

This study was motivated by the increasing complexity of fleet management in mining operations, particularly due to aging vehicles, rising maintenance costs, and the growing demand for high operational reliability. Light vehicles play an essential role in supporting daily mining activities, including personnel transportation and logistics distribution; therefore, inappropriate replacement decisions may reduce operational efficiency and increase operational risks. To address this challenge, this study incorporated a comprehensive set of evaluation criteria covering economic, technical, and operational aspects. Economic criteria included initial acquisition cost, operating expenses, maintenance costs, and residual value, while technical criteria covered vehicle reliability, fuel efficiency, and mechanical failure frequency. Operational considerations, including vehicle availability, utilization rate, safety standard compliance, and environmental impact, were also incorporated to provide a comprehensive assessment.The data used in this research were obtained from company databases, maintenance records, and expert evaluations from experienced practitioners. By applying Multi-Criteria Decision Making (MCDM) techniques, this study systematically analyzed and ranked alternative replacement options to identify optimal replacement timing and priorities. The application of the MCDM approach enhanced the quality and objectivity of vehicle replacement decisions at PT Freeport Indonesia. The results indicated that some older vehicle units remained economically and operationally feasible due to stable performance and relatively low operating costs. The proposed model has the potential to reduce total lifecycle costs, improve fleet availability, and enhance overall operational productivity.