Abstract -This study proposed a two-dimensional lease contract – age and usage limits – for new and used equipment. Under the lease contract, the lessee agrees that an additional cost will be charged when the usage rate exceeds a threshold value. The lessor performs both preventive and corrective maintenance actions. The decision problem for the lessor is to find the optimal price of each lease option offered, and for the lessee is to select the best lease option. We modeled using a cooperative game theory formulation, and the optimal decisions for the lessor and the lessee are coordinated in order to reach a win-win solution.
Keywords -cooperative game theory, coordination, expected profit, imperfect preventive maintenance, new and used equipment,
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The one dimensional lease contract is characterized by time/age limit whereas the two dimensional lease contract is characterized by age and usage limits. For the one-dimensional lease contract, a lot of works have been done but we are not aware for the two dimensional lease contract. For the new lease item, [3], [4], [5] developed the optimal PM policy, the optimal length of the lease period and derived the optimal number and degree of PM. Furthermore, [6], PM actions are done when the failure rate reaches a prespecified threshold and failures between PM are minimally repaired. The optimal threshold of failure rate is obtained by minimizing the total maintenance costs. The authors in [7] extends the model of [6] to the case where the length of the lease period is not fixed. For the used equipment, [8], [9], [10], and [11] investigated the optimal upgrade level before leasing, the optimal PM, the optimal length of the lease period, and the multi-phase periodic PM policy within the lease period. Finally, for the remanufactured item, [12] considered lease options which include a remanufactured …show more content…
1 year (called a one dimensional lease contract). For the case where equipment is used intensively, the usage will significantly influence the degradation of the equipment and this in turn will increase the number of failures during the lease period and hence a bigger total repair cost. This indicates the need to include usage in modeling the failure and defining the lease contract. In this paper, we propose a lease contract which involves two parameters – i.e. age and usage limits (called a two dimensional lease contract). In addition, due to fierce competition, the lessor tends to offer a longer period of a lease contract e.g. 2 to 5 years. A longer leased period gives more revenue to the lessor, but this increases the maintenance cost for servicing the equipment. An effective PM will reduce the number of equipment failures (and hence lower the repair cost) and avoid the penalty cost. In the lease contracts studied for a new item or a used item, the study is done for each item separately. In this paper, we consider the situation where the new and used item lease contracts are competing with each other, and examine them in the case of a two dimensional lease contract (See Fig. 1). Since the study from the lessor and lessee perspectives, we will use a game theory formulation to model the decision
John Sides’ LA City Limits: African American Los Angeles from the Great Depression to the Present focuses on the migration of southern African Americans to the west between the early 1900’s and the 1970’s. Although there was a great migration of Southern African Americans to the north, there was more of an impact on African American lives in western cities like Los Angeles. Sides claims that the migration of southern African Americans was due to their desire to escape the bigotry and injustices that they faced in the southern states. Los Angeles was one of the many cities that provided hope for the southern African Americans to escape their prior social and economic conditions. While life in Los Angeles was better than the lives that the southern
FIE445 – Take-home Exam Esty, Case n°18: “Mobile Energy Services Company” Candidate numbers: 8 and 17 Question 1: Ownership and contractual structures Following the restructuration of Scott Paper and the subsequent acquisition of the energy complex by the Southern Company, a heavy contractual framework was displayed in order to try to secure the relationships between the parties. The diagram below encompasses the most notable elements of this framework, with respect to the ownership of the Mobile Energy Services Company (MESC) and its agreements with other parties. * MESC LLD was acquired by the Southern Company after a bidding process, through two of its (fully owned) subsidies: MESC Holding Incorporated and Southern Electric International.
Porter´s Five Forces is the analytical framework chosen to analyse GE´s Playbook. GE is one of the world´s most diverse companies spanning a wide range of businesses (Grant, 2005), including appliances and lighting, aviation, capital (commercial lending and leasing, consumer, real estate, energy financial services, aviation financial services), energy management, healthcare, oil & gas, power & water, and transportation (General Electric, 2015). Some of their customers are: - Aviation, Commercial Engines: Boeing - Capital Inventory Financing: P.C. Richard and Son - Distributed Energy: Songas - Healthcare: Wheaton Franciscan
Unknown to many people is that even after the Civil War and the 13th, 14th, and 15th Amendments had been established slavery was still going on. The information is just one of the many things that has been covered-up throughout history. Before the Civil War started slavery was going on, after the Civil War ended the 13th Amendment abolished slavery, the 14th Amendment stated that all free people were citizens, and the 15th Amendment said all black men could vote. A little time after the Civil War and the 13th-15th Amendments new crimes, convict leasing, and peonage were established.
With that in mind, The Home Depot has two generic brand products within the store one is HDX that could be found in almost every department of the store, this product usually doesn’t carry a warranty and for the most part it is built for residential use due to it lower prices and quality point. Whereas, Husky is the other company’s house brand, in which this product carries a warranty and a bit more expensive but with great quality. Meaning the stages of products, whether new or old go through or their growth in the market place that is influenced by Market Demand. For instance, Managers in Leadership need to know what stage a product is in due to the benefit of a devise marketing program for product sales due to, a product goes beyond itself if its presented to the store proper, the way it is packed and the service as well customer service and warranties that is offered for the product from within the company. (Ehmke, Fulton, Lusk, 2005).
The adoption of new technologies and trends is being facilitated in the industry for the competition and the customer’s overall experience. Many suppliers that are having similar strategies face a strong competition. The barriers for exiting the markets are high. Products and services of are undifferentiated leading the customer to focus on the prices offered. Low market growth, so it can be increased only by taking another firm’s market share.
Franchising and decision variables The article in Franchising versus company-run operations: Modal choice in the global hotel sector discusses the various aspects considered by well-established hotels when they face the dilemma of whether to franchise a new hotel in a new geography or actually own the hotel themselves. The article is helpful in drawing the parallels for franchising decisions in service industry and especially pretty apt for the services which include high initial capital investment. The authors (F J Contractor & S K Kundu) borrow the definition of franchising from Caves & Murphy 1976 at the onset of the article and visualize the prospective franchisee as the sales agent or distributor of the brand owner.
For the disadvantages, IKEA’s partners may have the different objectives for the joint venture, there is an imbalance in levels of expertise, investment or assets which will cause the conflict happen between the IKEA and its partners, and different cultures and management policy will lead to poor integration and co-operation for IKEA’s joint venture decision making
In the case of hotels, suppliers create different consumer segments, we can relate to them as lower-end consumers, and higher-end consumers. Obviously, hotels cannot set the price that higher-end consumers are willing to pay, because all lower-end consumers will not be able to afford the good. Inversely, if hotels set the price that lower-end consumers are willing to pay, higher-end consumers gain huge consumer surplus, thus lowering the profit for the suppliers. In order to take the consumer surplus, hotels keep lower prices for some rooms in order to target lower-end consumers and offer some higher quality rooms (for example presidential suits) to target higher-end consumers. The difference in revenues providing different rooms and the same ones is seen below.
b) Participation in Facility Financing: A service provider who participates in the financing of an activity is in a better bargaining position than one who does not. c) Choke Points in the Port: Existence of Choke Points in the port which facilitate slowdowns of port operations provides power that is often employed to extract concessions from port
Threat of Substitutes 4. Bargaining Power of Buyers 5. Power vested by Suppliers 1. Competitive Rivalry: According to Porter the competitiveness in any sector is significantly increased by the number of players operating in the field and their major competencies.
For the company, it gets the raw materials like wood and wood fiber from its internal suppliers and other raw materials like metal from its external suppliers. At this stage, parties like IKEA Industry and IKEA’s external suppliers are involved. Since IKEA has to purchase materials from numerous suppliers, the company has 31 trading service offices in 26 countries so that new idea testing, production monitoring, quality checks and price negotiations can be carried out efficiently. This ensures that the material costs are at its lowest and at the same time, material comes in good
Regular vehicle maintenance and service has become a top priority among car owners. This ascertains the car’s life-span and the car owner’s safety as well. It helps in detecting the smallest defects and prevents it from turning into major issues thereby decreasing any service and/or repair expenses. In addition, if the car is treated well it even contributes towards a healthy environment. For regular car maintenance your car manual or handbook is fit for guidance.
Exercise 3 Introduction Push and pull are strategic supply chain decisions can that are as a results of the impacts of operational, product and demand related variables (Wanker and Zinn, 2004). The push strategy moves products based on planning or forecasting whereas the pull strategy moves products as a results of real demand (Ballou, 1992). Thus in a push system, the products are pushed through the supply chain channel right from production to the retailer. The manufacturer builds its production based on historical ordering patterns and forecasting. Due to this it takes a longer time for this system to respond to changes in demand which results in overstocking, bottlenecks and bullwhip effect in the system.
Therefore, new entrants have to ensure that they have ample financial resource to sustain in this industry. 3.2.2 Bargaining power of suppliers (high bargaining power of suppliers) Telecommunications industry in Malaysia is dependent on imports for the majority of its network components as