Transportation: A Global Supply Chain Perspective
9th Edition
ISBN: 9781337406642
Author: Robert A. Novack, Brian Gibson, Yoshinori Suzuki, John J. Coyle
Publisher: Cengage Learning
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Chapter 6, Problem 1.3C
Summary Introduction
Case summary: CEO of company C concerned about the problem that has existed more than 20 years. Even the priors decision did not resolve the problem. One of the decision is to purchase new locomotives and renovate the repair shops bout it is inefficient. Customers experience poor service from company C. Availability of equipment and failure rate between mean time are low compared to other companies. So the company C is considering a new approach to the equipment problem. And the new approach is to lease locomotives from several sources. John vice president estimates that the company would save upto 5 milion annually by this new pproach. The new lease method call for the manufacturers doing the repair work to charge only for maintenance on the actual number of miles that a particular unit operates. The lease agrrement method will last ipto 15 years.
To determine: whether a decision of leasing is best or not.
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Transportation: A Global Supply Chain Perspective
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