Optimal preventive maintenance strategy for leased equipment under successive usage-based contracts
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
Original language | English |
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Pages (from-to) | 5705–5724 |
Journal / Publication | International Journal of Production Research |
Volume | 57 |
Issue number | 18 |
Online published | 8 Nov 2018 |
Publication status | Published - Sept 2019 |
Link(s)
Abstract
In the context of equipment leasing, maintenance service is usually bundled with the leased equipment and offered by the lessor as an integrated package under a lease contract. The lessor is then responsible to prescribe an effective maintenance policy to keep the equipment operational in an economical way. This paper investigates upgrade and preventive maintenance (PM) strategies for industrial equipment during successive usage-based lease contracts with consideration of a warranty period, from the lessor's perspective. The accelerated failure time model and age reduction model are adopted to capture the effect of usage rate and imperfect PM/upgrade on the equipment reliability, respectively. More importantly, since equipment usage rates may vary across different lease contracts, this study develops an age correspondence framework to characterise usage rate shifts between successive lease periods. The optimal upgrade degree and the optimal number and level of PM actions are progressively updated for each upcoming lease period to minimise the total expected lease servicing cost, by considering the usage rate and maintenance implementation history. Numerical studies show that under given cost structures, periodical PM activities within each lease period tends to outperform the pre-leasing upgrade actions, though both of them can reduce the lease servicing cost.
Research Area(s)
- cost analysis, maintenance management, Successive leasing, upgrade, usage-based contract, warranty
Citation Format(s)
Optimal preventive maintenance strategy for leased equipment under successive usage-based contracts. / Wang, Xiaolin; Li, Lishuai; Xie, Min.
In: International Journal of Production Research, Vol. 57, No. 18, 09.2019, p. 5705–5724.
In: International Journal of Production Research, Vol. 57, No. 18, 09.2019, p. 5705–5724.
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review