The concept of a bin leasing system represents an effort to use bins more extensively. In a leasing system one inventory of bins would be used by two‘or more annual users. System benefits would be lower per-use costs for the user and the opportunity for the lessor to make a profit.
In order to establish a working data base of information, a mailed questionnaire was sent to 333 fruit and vegetable processors. The response rate on the survey was 45%.
A typical bin is built of hardwood lumber, lasts about seven years, and costs an average of $36.53. Seventy-eight percent of the owners considered bin repair a problem, 85% thought bin transport was expensive, 96.5% agreed that bins were a significant investment. Overall, 66% considered bin leasing a viable option to ownership.
Eastern North Carolina was chosen as the most promising leasing system location. The system will cater to cucumber/pepper processors and sweet potato packers. The method chosen to establish the system is to contract with one or more large companies to supply, on a lease basis, the required replacement bins for future years.
A sample system was designed based on cost and revenue information received from area bin owners. Calculations yielded a net present value of $31,056.99 for a 15 year run of the system when using a discount rate of 12.5%.
The effects of changes in key variables were analyzed. The most dramatic changes in NPV were due to changes in bin life and per-bin revenues. / Master of Science
| Identifer | oai:union.ndltd.org:VTETD/oai:vtechworks.lib.vt.edu:10919/45723 |
| Date | 15 November 2013 |
| Creators | Garrahan, Thomas Booth |
| Contributors | Forest Products |
| Publisher | Virginia Tech |
| Source Sets | Virginia Tech Theses and Dissertation |
| Detected Language | English |
| Type | Thesis, Text |
| Format | xi, 136 leaves, BTD, application/pdf, application/pdf |
| Rights | In Copyright, http://rightsstatements.org/vocab/InC/1.0/ |
| Relation | OCLC# 12998557, LD5655.V855_1985.G377.pdf |
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