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Online Leasing Problem with Linear Transaction Costs for Durable Equipment |
LIU Bin, XIN Chun-Lin, CUI Wen-Tian |
1. Beijing University of Chemical Technology, Beijing, China; 2. Xi’an Jiaotong University, Xi’an, China |
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Abstract We assume that the decisionmaker can sell the used equipment after paying a transaction cost when he no longer needs it, and that the transaction costs are linear to the price. Our analysis shows that the optimal timing of online algorithm with considering the profit selling used equipment is earlier than that of online algorithm without considering it, and that the real competitive ratio of online algorithm is more than the nominal competitive ratio if the transaction (buying and selling) costs are included in the cost buying the equipment when the decisionmaker designs online algorithm.
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Received: 26 May 2010
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