The market potential and economic feasibility of a wooden pallet bin leasing system

dc.contributor.authorGarrahan, Thomas Boothen
dc.contributor.departmentForest Productsen
dc.description.abstractThe 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.en
dc.description.degreeMaster of Scienceen
dc.format.extentxi, 136 leavesen
dc.publisherVirginia Techen
dc.relation.isformatofOCLC# 12998557en
dc.rightsIn Copyrighten
dc.subject.lccLD5655.V855 1985.G377en
dc.subject.lcshLease and rental servicesen
dc.subject.lcshPallets (Shipping, storage, etc)en
dc.titleThe market potential and economic feasibility of a wooden pallet bin leasing systemen
dc.type.dcmitypeTexten Productsen Polytechnic Institute and State Universityen of Scienceen


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