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Systems
Article . 2022 . Peer-reviewed
License: CC BY
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Systems
Article . 2022 . Peer-reviewed
License: CC BY
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Article . 2022
Data sources: DOAJ
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Article . 2022
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The Decision-Making for the Optimization of Finance Lease with Facilities’ Two-Dimensional Deterioration

Authors: Chih-Chiang Fang; Chin-Chia Hsu 0003; Je-Hung Liu;

The Decision-Making for the Optimization of Finance Lease with Facilities’ Two-Dimensional Deterioration

Abstract

In the past, most companies in developing countries usually own facilities or equipment for running their businesses. However, for some managerial and financial reasons, the situation may change. Recently, leasing facilities is becoming more popular than purchasing them. Furthermore, since the deterioration of equipment or facilities depends on both time and usage, when considering only one of the two factors, the deterioration estimation for the leased facilities could be distorted. Therefore, in such cases, a two-dimensional failure model would be appropriate for dealing with such problems. In this study, in order to determine the optimal lease decision for lessors, we use analytical models and efficient solution algorithms based on the two deterioration factors (time and usage). However, such complex mathematical models are difficult to apply in real cases, and therefore the study proposes the design of computerized system architecture and the corresponding solution algorithms to enhance the practicality of the applications. Besides, a nonhomogeneous Poisson process is employed to describe the successive failure times of the leased facility. Finally, the application and sensitivity analyses will provide managerial implications and suggestions for decision-makers under different preventive maintenance alternatives.

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Keywords

TA168, financial analysis, decision support system, preventive maintenance, two-dimensional deterioration, T1-995, finance lease, Technology (General), Systems engineering

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    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
6
Top 10%
Average
Top 10%
gold