 Managing damaged asset: a case study optimisation between refurbishing and divestiture using capital budgeting in a logistics business in IndonesiaEffnu Subiyanto, Fitri Ismiyanti and Annisa Farahmei Effnandya International Journal of Management and Decision Making, 2023, vol. 22, issue 2, 160-181 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. Keywords: divestiture; corporate strategy; operation management; logistics; refurbish; capital budgeting; financial ratio; Indonesia. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmdma:v:22:y:2023:i:2:p:160-181 Access Statistics for this article More articles in International Journal of Management and Decision Making from Inderscience Enterprises Ltd |
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