8th Annual International Conference on Industrial Engineering and Operations Management

The Impact of Fleet Size on Remanufactured Product with Usage-based Maintenance Contract

Hennie Husniah
Publisher: IEOM Society International
0 Paper Citations
Track: Reliability and Maintenance

We consider a situation where a mining company operates a number of remanufactured trucks (as a fleet) for transporting mining materials (such as coal, ores) from several mining fields to processing units.  A high availability of the fleet of trucks is critical factor for achieving a monthly production target of the company. A usage-based maintenance contracts with coordination and non coordination between two parties is applied to the truck operated in a mining industry. The situation under study is that an agent offers service contract to the owner of the truck after warranty ends. This contract has only a time limit but no usage limit. If the total usage per period exceeds the maximum usage allowed in the contract, then the owner will be charged an additional cost. In general, the agent (Original Equipment Manufacturer/OEM) provides a full coverage of maintenance, which includes PM and CM under the lease contract. The decision problem for the owner is to select the best option offered that fits to its requirement, and the decision problem for the agent is to find the optimal maintenance efforts for a given price of the service option offered. We first find the optimal decisions using coordination scheme and then with non coordination scheme  for both parties. And also we give numerical examples to show the optimal number of server for the OEM and the optimal strategy for the owner.

Published in: 8th Annual International Conference on Industrial Engineering and Operations Management, Bandung, Indonesia

Publisher: IEOM Society International
Date of Conference: March 6-8, 2018

ISBN: 978-1-5323-5944-6
ISSN/E-ISSN: 2169-8767