Two dimensional maintenance contract with coordination between owner and agent
- Resource Type
- Conference
- Authors
- Husniah, H.; Pasaribu, U. S.; Iskandar, B. P.
- Source
- 2016 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM) Industrial Engineering and Engineering Management (IEEM), 2016 IEEE International Conference on. :516-520 Dec, 2016
- Subject
- Aerospace
Components, Circuits, Devices and Systems
Computing and Processing
Engineering Profession
General Topics for Engineers
Nuclear Engineering
Power, Energy and Industry Applications
Robotics and Control Systems
Signal Processing and Analysis
Transportation
Contracts
Warranties
Preventive maintenance
Companies
Hazards
Degradation
two dimensional maintenance contract
coordination
imperfect preventive maintenance
bonus scheme
- Language
- ISSN
- 2157-362X
A two dimensional maintenance contracts with coordcination between two parties is studied in this paper. The contract is applied to a dump truck operated in a mining industry. The situation under study is that an agent offers two dimensional service contract to the owner of the truck. The owner's decision to get high availability and the agent's decision to minimize the total maintenance cost are coordinated in order to reach a win-win solution. In addition, we consider the use of incentive contracts to the agent based on a combination of a target uptime level and a bonus. This is done in order to obtain a win-win situation and provides flexibility in allocating the extra profit generated from coordination.