CPPB Certified Professional Public Buyer Exam

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A public transit agency has two identical, aging buses. One bus has a failed engine that is too costly to repair, while the other is operational but requires a specific transmission component that is difficult to source. What asset management strategy would be most cost-effective?

Repairing the engine on the first bus regardless of the cost to maintain fleet size. Selling both buses at auction and using the proceeds for a new bus. Cannibalizing the needed transmission component from the bus with the failed engine to repair the operational bus. Scrapping both buses immediately to reduce maintenance liabilities.

Correct Answer:

Cannibalizing the needed transmission component from the bus with the failed engine to repair the operational bus.

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