IDEAS home Printed from https://ideas.repec.org/a/ids/ijmdma/v22y2023i2p160-181.html
   My bibliography  Save this article

Managing damaged asset: a case study optimisation between refurbishing and divestiture using capital budgeting in a logistics business in Indonesia

Author

Listed:
  • Effnu Subiyanto
  • Fitri Ismiyanti
  • Annisa Farahmei Effnandya

Abstract

This study aims to help practitioners and industries measure their asset optimisation in more detail and consider taking the step of refurbishing or divestiture as an option in operational management. The developed methodology is based on capital budgeting and combines it with several financial ratio considerations. This study found that capital budgeting and several financial ratios are proven tools that help industries make the best decisions between options. Based on econometric calculations, the divestiture option is more advisable than the refurbish scheme. First, this study is scientifically met with the aim of asset optimisation in the logistics sector, but it can be adapted for other types of businesses with adequate adjustments. These findings are practically applicable to help industries make faster decisions. This study contributes to the development of knowledge on global logistics businesses.

Suggested Citation

  • Effnu Subiyanto & Fitri Ismiyanti & Annisa Farahmei Effnandya, 2023. "Managing damaged asset: a case study optimisation between refurbishing and divestiture using capital budgeting in a logistics business in Indonesia," International Journal of Management and Decision Making, Inderscience Enterprises Ltd, vol. 22(2), pages 160-181.
    • Handle: RePEc:ids:ijmdma:v:22:y:2023:i:2:p:160-181
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=129834
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijmdma:v:22:y:2023:i:2:p:160-181. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=19 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.