Consolidating Facilities for the Connecticut Department of Transportation: a Case-Study

Abstract

The Connecticut Department of Transportation (ConnDOT) was charged with investigating the possibility of reducing costs by operating with fewer than 13 equipment repair facilities. Using a mixed-integer programming model, we helped ConnDOT identify options for achieving savings without sacrificing quality of service. A key feature of the model is that it establishes repair capacities based on the past performance of benchmark facilities within the system. As we developed recommendation, we gave serious consideration to factors outside the context of the model and to feedback received from ConnDOT personnel. Ultimately, we proposed two options-one containing ten facilities and the other 11. The net present values of savings offered by these options are estimated at over $5.0 million and $3.1 million, respectively. While the 11-facility option is lower in savings,it has advantages in that it: (1) satisfies concerns highlighted by ConnDOT Maintenance; (2) is easier to implement than the ten-facility option; and (3) represents less of a current commitment, which is beneficial if future consideration of additional changes is likely. These advantages contributed to the 11-facility option being the one most widely preferred within ConnDOT.