We consider the allocation of buses from different stations to different routes in a transportion company in order to maximize returns. The company purchases K number of buses with a capacity of 18 passengers each, to be allocated to M number of routes from N number of stations in Nigeria. These buses are subject to break down as a result of bad roads and depreciation. It is expected that every break down bus will be repaired and put into operation. Since it is uncertain when the buses will break down, we assume without loss of generality that the state of the buses is random. Our aim is to determine the routes that yield the maximum returns putting into consideration the rate of break down of the buses as well as time consumption from the routes. We assume that the buses are distributed evenly to all the stations at the beginning of the planning horizon. We also assume for instants that buses allocated from Lagos station to Benin and from Benin station to Lagos will not yield the same returns as a result of the following factor: the amount charge from Lagos to Benin may not be the same as that charge from Benin to Lagos due to difference in demand. The result shows that careful planning and effective allocation of the buses will enhance profitability of the operation.
Dynamic optimization, Allocation of buses, Different stations, Different routes, Transportation company, Functional buses, Planning
