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Optimal periodic preventive maintenance policy for leased equipment

Author

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  • Pongpech, J.
  • Murthy, D.N.P.

Abstract

For leased equipment the lessor incurs penalty costs for failures occurring over the lease period and for not rectifying such failures within a specified time limit. Through preventive maintenance actions the penalty costs can be reduced but this is achieved at the expense of increased maintenance costs. The paper looks at a periodic preventive maintenance policy which achieves a tradeoff between the penalty and maintenance costs.

Suggested Citation

  • Pongpech, J. & Murthy, D.N.P., 2006. "Optimal periodic preventive maintenance policy for leased equipment," Reliability Engineering and System Safety, Elsevier, vol. 91(7), pages 772-777.
    • Handle: RePEc:eee:reensy:v:91:y:2006:i:7:p:772-777
    DOI: 10.1016/j.ress.2005.07.005
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    References listed on IDEAS

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    1. Wang, Hongzhou, 2002. "A survey of maintenance policies of deteriorating systems," European Journal of Operational Research, Elsevier, vol. 139(3), pages 469-489, June.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Zhu, Ying & Xia, Tangbin & Chen, Zhen & Pan, Ershun & Xi, Lifeng, 2022. "Optimal maintenance service strategy for OEM entering competitive MRO market under opposite patterns," Reliability Engineering and System Safety, Elsevier, vol. 217(C).
    2. Zhou, Xiaojun & Wu, Changjie & Li, Yanting & Xi, Lifeng, 2016. "A preventive maintenance model for leased equipment subject to internal degradation and external shock damage," Reliability Engineering and System Safety, Elsevier, vol. 154(C), pages 1-7.
    3. Si, Guojin & Xia, Tangbin & Zhu, Ying & Du, Shichang & Xi, Lifeng, 2019. "Triple-level opportunistic maintenance policy for leasehold service network of multi-location production lines," Reliability Engineering and System Safety, Elsevier, vol. 190(C), pages 1-1.
    4. Yi Ding & Anatoly Lisnianski & Ilia Frenkel & Lev Khvatskin, 2009. "Optimal corrective maintenance contract planning for aging multi‐state system," Applied Stochastic Models in Business and Industry, John Wiley & Sons, vol. 25(5), pages 612-631, September.
    5. Hamidi, Maryam & Liao, Haitao & Szidarovszky, Ferenc, 2016. "Non-cooperative and cooperative game-theoretic models for usage-based lease contracts," European Journal of Operational Research, Elsevier, vol. 255(1), pages 163-174.
    6. Sharafali, Moosa & Tarakci, Hakan & Kulkarni, Shailesh & Razack Shahul Hameed, Raja Abdul, 2019. "Optimal delivery due date for a supplier with an unreliable machine under outsourced maintenance," International Journal of Production Economics, Elsevier, vol. 208(C), pages 53-68.
    7. Wu, Shaomin, 2012. "Assessing maintenance contracts when preventive maintenance is outsourced," Reliability Engineering and System Safety, Elsevier, vol. 98(1), pages 66-72.
    8. Xia, Tangbin & Sun, Bowen & Chen, Zhen & Pan, Ershun & Wang, Hao & Xi, Lifeng, 2021. "Opportunistic maintenance policy integrating leasing profit and capacity balancing for serial-parallel leased systems," Reliability Engineering and System Safety, Elsevier, vol. 205(C).
    9. Jackson, Canek & Pascual, Rodrigo & Mac Cawley, Alejandro & Godoy, Sergio, 2023. "Product–service system negotiation in aircraft lease contracts with option of disagreement," Journal of Air Transport Management, Elsevier, vol. 107(C).
    10. Rumin Teng & Jifei Liang & Guanglei Wu & Dianlong Wang & Xin Wang, 2019. "An optimal preventive maintenance strategy for the hydraulic system of platform firefighting vehicle based on the improved NSGA-II algorithm," Journal of Risk and Reliability, , vol. 233(6), pages 978-989, December.
    11. Xia, Tangbin & Dong, Yifan & Xiao, Lei & Du, Shichang & Pan, Ershun & Xi, Lifeng, 2018. "Recent advances in prognostics and health management for advanced manufacturing paradigms," Reliability Engineering and System Safety, Elsevier, vol. 178(C), pages 255-268.
    12. Shafiee, Mahmood & Chukova, Stefanka, 2013. "Maintenance models in warranty: A literature review," European Journal of Operational Research, Elsevier, vol. 229(3), pages 561-572.
    13. Jackson, Canek & Pascual, Rodrigo, 2021. "Joint pricing and maintenance strategies in availability-based product-service systems under different overhaul conditions," Reliability Engineering and System Safety, Elsevier, vol. 216(C).
    14. Ben Mabrouk, A. & Chelbi, A. & Radhoui, M., 2016. "Optimal imperfect maintenance strategy for leased equipment," International Journal of Production Economics, Elsevier, vol. 178(C), pages 57-64.
    15. Xia, Tangbin & Cao, Lei & Xu, Yuhui & Zhang, Kaigan & Chen, Zhen & Pan, Ershun & Xi, Lifeng, 2024. "Multi-level maintenance and inventory joint optimization for a k-out-of-n hyper-system considering the selection of suppliers with incentive discount policies," Reliability Engineering and System Safety, Elsevier, vol. 241(C).
    16. Huang, Yeu-Shiang & Ho, Jyh-Wen & Hung, Jin-Wei & Tseng, Tzu-Liang (Bill), 2021. "A customized warranty model by considering multi-usage levels for the leasing industry," Reliability Engineering and System Safety, Elsevier, vol. 215(C).
    17. Cha, Ji Hwan, 2016. "New stochastic models for preventive maintenance and maintenance optimizationAuthor-Name: Lee, Hyunju," European Journal of Operational Research, Elsevier, vol. 255(1), pages 80-90.
    18. Ruey Yeh & Wen Chang & Hui-Chiung Lo, 2010. "Optimal threshold values of age and two-phase maintenance policy for leased equipments using age reduction method," Annals of Operations Research, Springer, vol. 181(1), pages 171-183, December.
    19. Wu, Jun & Xie, Min & Adam Ng, Tsan Sheng, 2011. "On a general periodic preventive maintenance policy incorporating warranty contracts and system ageing losses," International Journal of Production Economics, Elsevier, vol. 129(1), pages 102-110, January.

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