Session Title
Case Competition
Topic
Case Competition
Co-Topic 1
Case Competition
Co-Topic 2
Case Competition

LandMover Equipment Company: Optimizing Servicizing Product Contract

8:00 AM - 8:25 AM
Saurabh Bansal, Penn State; Dan Guide, Penn State; Wei Wu, Amazon; Yinshi Gao, The Pennsylvania State University; Yinshi (Alice) Gao, University of Chinese Academy of Sciences.
LMC is an original equipment manufacturer that sells capital-intensive earth-moving equipment. Recently, LMC decided to move towards a servicizing product model, which it expects to be more profitable and sustainable. Customers receive a product and return it back after use. The customers pay a fixed fee and a variable fee based on product usage. LMC performs extensive remanufacturing on the used product, e.g., taking the machine apart and repair. The remanufacturing cost depends on the customer's usage of the machine. LMC needs to determine the optimal contract for this business model.