Expanded Optimal Visit Suspension Policy Corporate Sale using Reliability Model  
Author Takahiro Nakamura

 

Co-Author(s) Kodo Ito; Toshio Nakagawa

 

Abstract The environment surrounding corporate organizations, whether for-profit or non-profit, has changed significantly, and the outlook remains difficult to predict. In this environment, the financial base of some organizations has weakened, and some corporate organizations are unable to respond to the growing need to address social issues. In Japan, the reform of the public interest incorporated foundation and incorporated association system, effective April 2025, will provide greater freedom to strengthen their financial base and simplify the procedures for transferring their operations to other corporations to continue their public interest activities. Nonprofit organizations are expected to respond to changes in the business environment by acquiring information from external organizations. On the other hand, sales representatives of financial institutions secure contact opportunities by providing useful information to corporate clients, and profit by proposing financial services. In this paper, we determine the optimal policy for deciding whether to continue visits, taking into account the costs of visits over a certain period, the benefits of the visit proposal, and the risk of the target corporation suddenly suspending operations. The age replacement of the reliability model is used to formulate the policy.

 

Keywords Closing strategy, Weibull distribusiton, Corporate sales, Financial institution
   
    Article #:  RQD2025-226
 

Proceedings of 30th ISSAT International Conference on Reliability & Quality in Design
August 6-8, 2025