Two Dimensional Maintenance Contracts for a Fleet of Dump Trucks Used in Mining Industry

Abstract:

In this paper, we study two dimensional maintenance contracts for a fleet of dump trucks operated in a mining industry. The two-dimensional contract is charaterised by two parameters (i.e. age and usage limits) which define a region. Two different shapes of the contract region are studied, where one region favors the customer, and the other the service provider. The maintenance service contracts studied is the performance based contract which offers incentives to motivate a service provider (an agent) to increase the equipment’s performance beyond the target. This in turn gives benefit for both the owner of the trucks and the agent of service contract. The decision problem under study is that an agent offers several two dimensional service contract options and the owner of the trucks has to select the optimal option. We use a Nash game theory formulation in order to obtain a win-win solution – i.e. the optimal strategy (pricing structure) for the agent and the optimal option for the owner.

• Periodical: Applied Mechanics and Materials (Volume 660)
• Pages: 1026-1031
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.660.1026
• Online since: October 2014
• Authors: Hennie Husniah*, Udjianna S. Pasaribu, Andi Cakravastia, Bermawi P. Iskandar
• Keywords: Fleet, Maintenance Contract, Nash game theory, Performance Based Contract

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