01
When a busy fleet cannot deliver the service it has sold
This session examines a leasing business that improved its placement figure while depending on uncertain returns to meet replacement commitments. I discuss the decision to hold 48 reserve units, the ₹9.6 crore capital cost and the later record of 43 timely callouts from 62 events. The nineteen unsuccessful cases remain central to the discussion. Participants consider what the utilisation measure describes, what it leaves out and how an investment proposal should connect stock, geography, compatibility and dispatch. The case does not imply that more reserve equipment is always preferable or that every successful replacement prevented a measurable loss. Finance's challenge about alternative uses of capital receives a full hearing. The session uses a fictional portfolio and requires no customer records. Its purpose is to help an executive team explain the service obligation behind an asset category and identify what evidence would justify changing the arrangement after the initial purchase has been approved.