IDEAS home Printed from https://ideas.repec.org/a/spr/jcomop/v36y2018i2d10.1007_s10878-018-0305-7.html
   My bibliography  Save this article

Online leasing problem with price fluctuations under the consumer price index

Author

Listed:
  • Xin Feng

    (Fujian Agriculture and Forestry University)

  • Yinfeng Xu

    (Donghua University)

  • Guanqun Ni

    (Fujian Agriculture and Forestry University)

  • Yongwu Dai

    (Fujian Agriculture and Forestry University)

Abstract

Price fluctuation is a common phenomenon in the leasing industry. This paper studies the online leasing problem in which the lessee does not know how long he will use the required equipment. Besides, the price of the equipment varies over time, and cannot be learned in advance. We bound the price fluctuations by the definition of the consumer price index. That is, the ratio of the prices between any two consecutive times lies in a predetermined range. By assuming, the lessee has two options for acquiring the equipment: purchase or lease. The problem requires that the leasing strategy should be determined under uncertainties in the using period and the price fluctuations, such that the cost for using the equipment is minimized. We present an optimal online strategy for solving this problem. Computational experiments are conducted to evaluate the characteristics of the problem and the performance of the proposed strategy.

Suggested Citation

  • Xin Feng & Yinfeng Xu & Guanqun Ni & Yongwu Dai, 2018. "Online leasing problem with price fluctuations under the consumer price index," Journal of Combinatorial Optimization, Springer, vol. 36(2), pages 493-507, August.
    • Handle: RePEc:spr:jcomop:v:36:y:2018:i:2:d:10.1007_s10878-018-0305-7
    DOI: 10.1007/s10878-018-0305-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10878-018-0305-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10878-018-0305-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Yanping Shi & Xiaolan Xu, 2015. "Leasing in China: An Overview," Chinese Economy, Taylor & Francis Journals, vol. 48(5), pages 312-329, September.
    2. Ran El-Yaniv & Richard M. Karp, 1997. "Nearly Optimal Competitive Online Replacement Policies," Mathematics of Operations Research, INFORMS, vol. 22(4), pages 814-839, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wenjie Wang & Lei Xie, 2022. "Optimal pricing of crowdsourcing logistics services with social delivery capacity," Journal of Combinatorial Optimization, Springer, vol. 43(5), pages 1447-1469, July.
    2. Yong Zhang & Jiahao Li & Xingyu Yang & Xiaohui Wang, 2022. "Lease or financial lease? Deterministic strategies for on-line financial lease problem with the second-hand transaction," Journal of Combinatorial Optimization, Springer, vol. 44(2), pages 1248-1264, September.
    3. Jiamin Lu & Nishan Chen & Xin Feng, 2023. "Competitive Analysis of the Online Leasing Problem for Scarce Resources," IJERPH, MDPI, vol. 20(1), pages 1-11, January.
    4. Xin Feng & Chengbin Chu, 2022. "Online leasing problem with price fluctuations and the second-hand transaction," Journal of Combinatorial Optimization, Springer, vol. 43(5), pages 1280-1297, July.
    5. Yong Zhang & Hong Lin & Lina Zheng & Xingyu Yang, 2022. "Adaptive online portfolio strategy based on exponential gradient updates," Journal of Combinatorial Optimization, Springer, vol. 43(3), pages 672-696, April.
    6. Yong Zhang & Jingting Wu & Wenxiong Lin & Muyu Hou, 2022. "Competitive analysis for two-option online leasing problem under sharing economy," Journal of Combinatorial Optimization, Springer, vol. 44(1), pages 670-689, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xin Feng & Chengbin Chu, 2022. "Online leasing problem with price fluctuations and the second-hand transaction," Journal of Combinatorial Optimization, Springer, vol. 43(5), pages 1280-1297, July.
    2. Jiamin Lu & Nishan Chen & Xin Feng, 2023. "Competitive Analysis of the Online Leasing Problem for Scarce Resources," IJERPH, MDPI, vol. 20(1), pages 1-11, January.
    3. Guo R. & Ascher H. & Love E., 2001. "Towards Practical and Synthetical Modelling of Repairable Systems," Stochastics and Quality Control, De Gruyter, vol. 16(1), pages 147-182, January.
    4. Yang, Liuyong & Wang, Rui & Chen, Zhenyi & Luo, Xingguo, 2020. "What determines the issue price of lease asset-backed securities in China?," International Review of Financial Analysis, Elsevier, vol. 72(C).
    5. Wang, Wei & Feng, Lipan & Li, Yongjian & Xu, Fangchao & Deng, Qianzhou, 2020. "Role of financial leasing in a capital-constrained service supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    6. Dai, Wenqiang & Dong, Yucheng & Zhang, Xiaotian, 2016. "Competitive analysis of the online financial lease problem," European Journal of Operational Research, Elsevier, vol. 250(3), pages 865-873.
    7. Munir, Qaiser & Kok, Sook Ching & Teplova, Tamara & Li, Tongxia, 2017. "Powerful CEOs, debt financing, and leasing in Chinese SMEs: Evidence from threshold model," The North American Journal of Economics and Finance, Elsevier, vol. 42(C), pages 487-503.

    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:spr:jcomop:v:36:y:2018:i:2:d:10.1007_s10878-018-0305-7. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.