#11402·Rolling Stock

Ulysses Chip Truck Fleet Expansion

Add two chip delivery trucks to Ulysses fleet.

DraftLow
West · Ulysses Site
Cody Smith PM
Jake Morales Submitter
Nov 6, 2026 Est. completion
Approval date
12 years Useful life
This request has not been submitted yet.
Total cost$385,000
Spent to date$00% of budget
Forecast remaining$385,000
Annual benefit$145,000

Problem

Third-party chip delivery costs have risen 28% over the past 2 years; capacity is the binding constraint.

Proposed solution

Purchase two self-owned chip delivery trucks. Cuts third-party delivery cost in half.

Justification

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Alternatives

OptionDescriptionTotal costUseful lifeRecommended
Option 1 — RecommendedPurchase two self-owned chip delivery trucks. Cuts third-party delivery cost in half.$385,00012 yrs
Option 2 — Rebuild in placeRebuild existing equipment in place with refurbished components. Lower upfront cost but shorter useful life and higher maintenance ongoing.$250,2508 yrs

Payback & benefit

Simple payback28 months
5-yr NPV$244,693
IRR25.6%

Actuals (from ERP)

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