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Optimal threshold values of age and two-phase maintenance policy for leased equipments using age reduction method

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  • Ruey Yeh
  • Wen Chang
  • Hui-Chiung Lo

Abstract

This paper investigates the optimal threshold values of age to perform preventive maintenance (PM) actions for leased equipment within the lease period. In this paper, we use age reduction method to describe the degree of PM and construct the maintenance cost function. For repairable leased equipment, two maintenance models are proposed: (i) maintenance policy of single-phase and (ii) maintenance policy of two-phase. During the lease period, PM actions are carried out when the age of equipment reaches a certain threshold value. Any failure of the leased equipment is rectified by a minimal repair within the lease period. Under these maintenance schemes, the mathematical models of the expected total cost for maintenance policies of single-phase and two-phase are established, and the optimal maintenance policies are derived such that the expected total cost is minimized. Finally, the features of the optimal maintenance policy are illustrated through numerical examples. Copyright Springer Science+Business Media, LLC 2010

Suggested Citation

  • 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.
    • Handle: RePEc:spr:annopr:v:181:y:2010:i:1:p:171-183:10.1007/s10479-010-0713-2
    DOI: 10.1007/s10479-010-0713-2
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    References listed on IDEAS

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    1. Yeh, Ruey Huei & Ho, Wen-Tsung & Tseng, Sheng-Tsaing, 2000. "Optimal production run length for products sold with warranty," European Journal of Operational Research, Elsevier, vol. 120(3), pages 575-582, February.
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    5. Richard Barlow & Larry Hunter, 1960. "Optimum Preventive Maintenance Policies," Operations Research, INFORMS, vol. 8(1), pages 90-100, February.
    6. Yeh, Ruey Huei & Lo, Hui-Chiung, 2001. "Optimal preventive-maintenance warranty policy for repairable products," European Journal of Operational Research, Elsevier, vol. 134(1), pages 59-69, October.
    7. Sheng-Tsaing Tseng & Ruey Huei Yeh & Wen-Tsung Ho, 1998. "Imperfect maintenance policies for deteriorating production systems," International Journal of Production Economics, Elsevier, vol. 55(2), pages 191-201, July.
    8. Jaturonnatee, J. & Murthy, D.N.P. & Boondiskulchok, R., 2006. "Optimal preventive maintenance of leased equipment with corrective minimal repairs," European Journal of Operational Research, Elsevier, vol. 174(1), pages 201-215, October.
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    Cited by:

    1. Reza Ahmadi, 2014. "Optimal maintenance scheduling for a complex manufacturing system subject to deterioration," Annals of Operations Research, Springer, vol. 217(1), pages 1-29, June.
    2. Caiyun Niu & Xiaolin Liang & Bingfeng Ge & Xue Tian & Yingwu Chen, 2016. "Optimal replacement policy for a repairable system with deterioration based on a renewal-geometric process," Annals of Operations Research, Springer, vol. 244(1), pages 49-66, September.
    3. Cavalcante, Cristiano A.V. & Lopes, Rodrigo S. & Scarf, Philip A., 2021. "Inspection and replacement policy with a fixed periodic schedule," Reliability Engineering and System Safety, Elsevier, vol. 208(C).
    4. Shafiee, Mahmood & Chukova, Stefanka, 2013. "Maintenance models in warranty: A literature review," European Journal of Operational Research, Elsevier, vol. 229(3), pages 561-572.
    5. Zhang, Yunzheng & Zhang, Xiaohong & Zeng, Jianchao & Wang, Jinhe & Xue, Songdong, 2019. "Lessees’ satisfaction and optimal condition-based maintenance policy for leased system," Reliability Engineering and System Safety, Elsevier, vol. 191(C).
    6. Nooshin Salari & Viliam Makis, 2020. "Joint maintenance and just-in-time spare parts provisioning policy for a multi-unit production system," Annals of Operations Research, Springer, vol. 287(1), pages 351-377, April.
    7. Chun Su & Xiaolin Wang, 2014. "Optimizing upgrade level and preventive maintenance policy for second-hand products sold with warranty," Journal of Risk and Reliability, , vol. 228(5), pages 518-528, October.
    8. Llesh Lleshaj & Dorina Kripa, 2021. "The Effect of Financial Leasing Threshold in the Financial Development and Economic Growth: Evidence from Albania," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 165-177.
    9. Yonit Barron, 2018. "Group maintenance policies for an R-out-of-N system with phase-type distribution," Annals of Operations Research, Springer, vol. 261(1), pages 79-105, February.

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