Track: Optimization

Abstract

A lease contract (LC) model for a fleet of dump truck with availability target is developed in this paper. Under this LC, the lessor provides a full maintenance service during the period LC. To sustain high performance of the fleet, we proposed an availability target as performance of the LC. In addition, the lessor gives some incentive in term of a price discount if the lessee leases more dump trucks.  The optimal decisions from the lessor’s viewed point (maintenance policy i.e number of periodic maintenance, maintenance level, pricing policy) are to minimize the total cost. The decision problem for the lessee is to select the best option suitable to its requirement.  We provide numerical examples for illustrating the optimal decisions for the lessee, and the lessor, which maximizes the expected profit for each party. 

Keywords—fleet, lease contract, availability, production, price discount, imperfect repair, preventive   maintenance, game theory.