MARKOV MODEL ON TWO DIMENSIONAL SERVICE CONTRACT

• Main Author: RAZI (NIM: 20814023), ZULFA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/31916
• Institution: Institut Teknologi Bandung

A dump truck can suffer damage caused by the influence of time, continuous use and lack of maintenance. In addition, the use of a dump truck on a normal road conditions and extreme road will provide different levels of stress. Increasing failure rate, the amount of damage will increase. In terms of economics, the damage will hamper the performance of the business, which will cause a decrease in earnings. Therefore, we need some maintenance to reduce the failure rate of the dump truck, one of which is to purchase a service contract. In this study, the failure rate is modeled using a Markov model and Accelerated Failure Time (AFT). The amount of damage that occurs during the contract period are calculated using Non-Homogeneous Poisson Process (NHPP). In addition, the manufacturer/ producers will offer two service options contracts and consumers will choose the optimal option. The optimal choice for producers and consumers based on maximizing expected utility function. Obtained from the model established profit expectations more profitable option 1 producers, while the profit expectations of option 2 is more beneficial to consumers.