Simulation modelling for equipment co-ownership startup business: A case study

S. Baysanand*, A. Ustundag

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Equipment co-ownership propose a unique business opportunity through a resource pooling effect. It allows customers to use an equipment on multiple modes without going through the obligations of ownership. On the other side, the business owners take advantage of pre-existing demand and business network without operational concerns. The co-ownership structure propose a win-win business opportunity However, this type of business also comprises a unique set of challenges, especially on the design phase. The foundation of this model in that the equipment owner is obligated to provide the equipment and related services to the customer (or co-owner) whenever it is requested. Otherwise a significant amount of compensation is paid. Hence, for the start-up company, selecting the initial number of machines and co-owners is a problem of trade-off. This study aims to solve this trade off by simulation modelling. The details of the model is provided through a case study. Challenges and solutions are demonstrated.


???event.eventtypes.event.conference???Joint International Symposium on "The Social Impacts of Developments in Information, Manufacturing and Service Systems" 44th International Conference on Computers and Industrial Engineering, CIE 2014 and 9th International Symposium on Intelligent Manufacturing and Service Systems, IMSS 2014

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