2011 Wagner Prize Finalist - Groupe La Poste, INSEAD, & Otto Beisheim School of Management

Fleet Renewal with Electric Vehicles at La Poste

We provide a decision model for La Poste on adoption of electric vehicles (EVs) for mail and parcel distribution. Two competing technologies are available, internal combustion vehicles and EVs. Uncertainty about fuel price and EV battery cost is taken into account. We derive the optimal timing of EV adoption and evaluate the total cost of fleet renewal. An optimal strategy for EV adoption and to support negotiations with stakeholders such as energy companies and EV manufacturers is formulated.