Service Contract with Periodic Preventive Maintenance for Product Sold with a Two-Dimensional Warranty

• Main Author: Nasrum, Akbar
• Format: Theses
• Language: Indonesia
• Subjects: Matematika
• Online Access: https://digilib.itb.ac.id/gdl/view/33597
• Institution: Institut Teknologi Bandung

This Thesis deals with maintenance service contracts for equipment (such as dump trucks) sold with two dimensional warranties. We consider a situation where an agent offers two maintenance contract options and the owner of the equiPPent has to select the optimal option i.e: the OEM carried out all repairs and preventive maintenance activities; the OEM carries out failure and the costumer undertakes in house preventive maintenance action. As the number of preventive maintenance and corrective maintenance that occurs in the area of servicing contracts is very influential in determining the value of the contract, we have to determine the optimal time between preventive maintenance that can minimize the cost of repair in the contract area. Moreover, we also study the maintenance service contract considering reduction of the intensity function after preventive maintenance from both the owner and OEM point of views. In this paper, we use a Weibull intensity function to consider a product with increasing failure intensity. We use a non-cooperative game formulation to determine the optimal price structure (i.e., the contract price and repair cost) for the OEM and the owner. From the model has been built, if the owner choose option one, we obtained the contract price for each truck around Rp. 139.840.699/year. If the owner choose option two, the cost of repairs to be paid depends on the number of failure that occurred during the servicing contract. From these, the first option is the optimal option because provides maximum benefit both to OEM and to the owner.