A heterogeneous vehicle fleet is one that is composed of several types of vehicles. The number of each type of vehicle in the fleet is called the fleet’s composition. The problem of determining the best fleet size and composition for an in-house heterogeneous company fleet having a known demand was solved in this paper. A computer model was developed which tied a fleet simulation model to two different search algorithms. One of the search algorithms is a complete factorial nonsequential search and the other is a combination of a partial factorial nonsequential search and a heuristic sequential hill-climbing search. The objective of both searches is to select the fleet size and composition which provides the lowest total vehicle travel costs to the company. Several examples were used to demonstrate the use of the model.

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