A STOCHASTIC MODEL FOR TRI-PARTITE SERVICE CONTRACTS

2013 ◽  
Vol 20 (02) ◽  
pp. 1350010 ◽  
Author(s):  
N. SHAMSI GAMCHI ◽  
M. ESMAEILI ◽  
M. A. SANIEE MONFARED
Keyword(s):  
Maintenance Cost ◽  
Repair Cost ◽  
Sale Price ◽  
Numerical Examples ◽  
Service Contract ◽  
Penalty Cost ◽  
Warranty Period ◽  
Service Contracts ◽  
Optimal Maintenance ◽  
First Time

Warranty as a kind of service contract plays a key role in business and legal transactions today. In this paper, we present for the first time a tri-partite service contract model including a manufacturer, an agent and a customer under risk parameter. We determine an optimal sale price, a warranty period and a warranty price for the manufacturer under quantity discount policies. The optimal maintenance cost or repair cost is obtained by the maximizing of an agent's profit according to the penalty cost incurred due to waiting time. Moreover, the customer maximizes his/her satisfaction by purchasing several products and choosing a portfolio of service contracts. Whereas the risk-aversion parameter on the customer side has an impact on their decision for choosing the type of service contract. On the other hand, the discount rate regime on the manufacturer side influences the number of purchased products. We present some numerical examples to illustrate the working logic of our model.

A three-level supply chain with warranty services, pricing and marketing decisions

2019 ◽  
Vol 14 (3) ◽  
pp. 686-716 ◽  
Author(s):  
Ata Allah Taleizadeh ◽  
Mahtab Sherafati
Keyword(s):  
Game Theory ◽  
Cooperative Games ◽  
Maintenance Cost ◽  
Theory Approach ◽  
Content Type ◽  
Agent Based ◽  
Warranty Period ◽  
Service Contracts ◽  
The Game Theory ◽  
Optimal Maintenance

Purpose This paper aims to present various three-level service contracts among the following three participants: a manufacturer, an agent and a customer. The interaction between the aforementioned participants will be modeled using the game theory approach. Under non-cooperative and cooperative games, the optimal sale price, warranty period and warranty price for the manufacturer and the optimal maintenance cost (repair cost) and marketing expenditure for the agent are obtained by maximizing their profits. The satisfaction of the customer is also maximized by being able to choose one of the suggested options from the manufacturer and the agent, based on the risk parameter. Design/methodology/approach Three-echelon supply chains with marketing and warranty services are studied. Game-theoretic approaches (non-cooperative and cooperative) are presented. The non-cooperative approaches are static (NE) and dynamic (Stakelberg) models. The cooperative approach is related to bargaining models (Nash bargaining games). The authors develop a sensitivity analysis of some parameters and their effect. Findings Based on the mentioned drawbacks (i.e. lack of a model containing warranty, marketing and pricing), despite their importance, a developed model is proposed in this research to cover one of the research gaps. In addition, main contributions of this paper that differentiate it from the existing papers are regarding inventory, lost sale and lost goodwill, which are significant in the comparison environment. Another advantage of this study is related to the solution approach, the game theory. Twofold of the games theoretical, i.e. cooperative (in three forms) and non-cooperative are considered, because of their importance. Three types of non-cooperative games are presented as follows: Nash equilibrium – each echelon decides respectively and simultaneously; manufacturer-Stackelberg – the manufacturer has more power than the agent and the agent has more power than the customer; and customer-Stackelberg – customer is leader of the agent and the agent is the leader of manufacturer. The involved cooperative game in this paper is the bargaining problem that the participants can determine how to share the additional profits. Originality/value In this paper, various three-level service contracts will be presented among the following three participants: a manufacturer, an agent and a customer. The interaction between the aforementioned participants will be modeled using the game theory approach. Under non-cooperative and cooperative games, the optimal sale price, warranty period and warranty price for the manufacturer and the optimal maintenance cost (repair cost) and marketing expenditure for the agent are obtained by maximizing their profits. The satisfaction of the customer is also maximized by being able to choose one of the suggested options from the manufacturer and the agent, based on the risk parameter. Several numerical examples are used to illustrate the models presented in this paper. Finally, the authors develop a sensitivity analysis of some parameters and their effects on the objective functions.

scholarly journals Evaluasi Manajemen Perawatan dengan Metode Reliability Centered Maintenance (RCM) II pada Mesin Cane Cutter 1 dan 2 di Stasiun Gilingan PG Meritjan - Kediri

Rekayasa ◽  
2017 ◽  
Vol 10 (2) ◽  
pp. 99
Author(s):  
Cahyo Purnomo Prasetyo
Keyword(s):  
Maintenance Cost ◽  
Repair Cost ◽  
Maintenance Policy ◽  
Work Safety ◽  
Maintenance Costs ◽  
Reliability Centered Maintenance ◽  
Optimal Maintenance ◽  
Critical Components ◽  
Optimal Maintenance Policy ◽  
Production Target

<p>Penelitian ini bertujuan untuk menentukan kebijakan perawatan optimal yang dapat mengurangi biaya perbaikan (repair cost) dan biaya konsekwensi operasional (operational consequence cost). Metode yang diterapkan pada penelitian ini adalah Reliability Centered Maintenance (RCM) II. Penelitian ini difokuskan pada mesin Cane Cutter 1 dan 2 dengan pertimbangan beberapa aspek yaitu : pengaruh kegagalan terhadap pencapaian target produksi, resiko keselamatan kerja dan biaya perawatan yang akan ditimbulkan. Dari hasil penelitian dapat diketahui bahwa komponen kritis pada mesin Cane Cutter 1 dan 2 adalah : Pisau dan Baut Pisau. Perawatan yang dilakukan untuk mengantisipasi dan mengatasi kegagalan yang terjadi pada komponen mesin tersebut adalah proactive task yang meliputi : scheduled restoration task dan scheduled discard task. Rata-rata penurunan biaya perawatan total yang didapatkan dengan mengurangkan ‘biaya total pada interval perawatan awal’ dan ‘biaya total pada interval perawatan optimal’ adalah 14,82 %.</p><p>Kata Kunci: cane cutter, downtime, pabrik gula.</p><p><strong> </strong></p><p><strong>ABSTRACT</strong></p><p><em>This research aims to determine the optimal maintenance policy which could reduce repair cost and operational consequence cost. The methods which applied in this research is Reliability Centered Maintenance (RCM) II. This research focuses on Cane Cutter 1 and 2 machines by considering several aspects, such as and effect of any failure on production target achievement, work safety risk and maintenance cost which might be caused by the critical condition. The result showed that some critical components at the Cane Cutter 1 and 2 machines were : Blade and Blade Bolt. The maintenance which could be done to anticipate and deal with any failure occurring in the machine components was called proactive task comprising : scheduled restoration task and scheduled discard task. The average reduction in total maintenance costs which was obtained by subtracting ‘total costs at initial maintenance interval’ and ‘total costs at optimal maintenance interval’ amounted to 14,82 %.</em></p><p><em>Keywords: cane cutter, downtime, sugar factory</em></p>

Optimizing Ship Machinery Maintenance Scheduling Through Risk Analysis and Life Cycle Cost Analysis

2006 ◽  
Author(s):  
Lahar Baliwangi ◽  
Kenji Ishida ◽  
Hidetoshi Arima ◽  
Ketut Buda Artana
Keyword(s):  
Life Cycle ◽  
Life Cycle Cost ◽  
Risk Evaluation ◽  
System Modeling ◽  
Scheduling Algorithm ◽  
Maintenance Scheduling ◽  
Maintenance Cost ◽  
Penalty Cost ◽  
Maintenance Schedule ◽  
Optimal Maintenance

Ship maintenance scheduling management integrated with risk evaluation and Life Cycle Cost (LCC) assessment approach is developed in this research. It improves upon existing practices in arranging an optimal maintenance schedule by modeling operational and economical risks. This paper researches maintenance scheduling algorithm with explicitly consider risks associated with some operation problems such as operating schedule, routes, ship position, resources availability, and achievement of reliability-availability-maintainability (RAM) of system. Modeling of components RAM with their failures consequences results risk evaluation. Time value of maintenance cost, replacement cost, earning rate, and penalty cost are also simulated. When the system reaches the lowest level of lower limit reliability, one or more components should be maintained or replaced. Since maintenance task may interrupt the operation, to minimize time-to-maintain all possible events of maintaining other components at the same time will be evaluated together with resources availability. By researching those possibilities, constraining the risk, and based on LCC calculation result, an optimal maintenance scheduling can be then well established.

Availability analysis and maintenance optimization for multiple failure mode systems considering imperfect repair

2021 ◽  
pp. 1748006X2110127
Author(s):  
Qingan Qiu ◽  
Baoliang Liu ◽  
Cong Lin ◽  
Jingjing Wang
Keyword(s):  
Failure Modes ◽  
Maintenance Cost ◽  
Imperfect Maintenance ◽  
Maintenance Policy ◽  
Cost Rate ◽  
Availability Analysis ◽  
Long Run ◽  
Optimal Maintenance ◽  
Maintenance Policies ◽  
Periodic Inspections

This paper studies the availability and optimal maintenance policies for systems subject to competing failure modes under continuous and periodic inspections. The repair time distribution and maintenance cost are both dependent on the failure modes. We investigate the instantaneous availability and the steady state availability of the system maintained through several imperfect repairs before a replacement is allowed. Analytical expressions for system availability under continuous and periodic inspections are derived respectively. The availability models are then utilized to obtain the optimal inspection and imperfect maintenance policy that minimizes the average long-run cost rate. A numerical example for Remote Power Feeding System is presented to demonstrate the application of the developed approach.

scholarly journals Second-order neutrosophic boundary-value problem

2021 ◽  
Author(s):  
Sandip Moi ◽  
Suvankar Biswas ◽  
Smita Pal(Sarkar)
Keyword(s):  
Differential Equation ◽  
Boundary Value Problem ◽  
Differential Calculus ◽  
Boundary Value ◽  
Second Order ◽  
Numerical Examples ◽  
Different Types ◽  
First Time

AbstractIn this article, some properties of neutrosophic derivative and neutrosophic numbers have been presented. This properties have been used to develop the neutrosophic differential calculus. By considering different types of first- and second-order derivatives, different kind of systems of derivatives have been developed. This is the first time where a second-order neutrosophic boundary-value problem has been introduced with different types of first- and second-order derivatives. Some numerical examples have been examined to explain different systems of neutrosophic differential equation.

scholarly journals A Costing Analysis for Decision Making Grid Model in Failure-Based Maintenance

2011 ◽  
Vol 2011 ◽  
pp. 1-15 ◽  
Author(s):  
Burhanuddin M. A. ◽  
Sami M. Halawani ◽  
A. R. Ahmad
Keyword(s):  
Decision Making ◽  
Production Cost ◽  
Good Control ◽  
Fish Bone ◽  
Maintenance Cost ◽  
Economic Downturn ◽  
Repair Cost ◽  
Grid Model ◽  
Computerized Maintenance Management System ◽  
Costing Analysis

Background. In current economic downturn, industries have to set good control on production cost, to maintain their profit margin. Maintenance department as an imperative unit in industries should attain all maintenance data, process information instantaneously, and subsequently transform it into a useful decision. Then act on the alternative to reduce production cost. Decision Making Grid model is used to identify strategies for maintenance decision. However, the model has limitation as it consider two factors only, that is, downtime and frequency of failures. We consider third factor, cost, in this study for failure-based maintenance. The objective of this paper is to introduce the formulae to estimate maintenance cost. Methods. Fish bone analysis conducted with Ishikawa model and Decision Making Grid methods are used in this study to reveal some underlying risk factors that delay failure-based maintenance. The goal of the study is to estimate the risk factor that is, repair cost to fit in the Decision Making Grid model. Decision Making grid model consider two variables, frequency of failure and downtime in the analysis. This paper introduces third variable, repair cost for Decision Making Grid model. This approaches give better result to categorize the machines, reduce cost, and boost the earning for the manufacturing plant. Results. We collected data from one of the food processing factories in Malaysia. From our empirical result, Machine C, Machine D, Machine F, and Machine I must be in the Decision Making Grid model even though their frequency of failures and downtime are less than Machine B and Machine N, based on the costing analysis. The case study and experimental results show that the cost analysis in Decision Making Grid model gives more promising strategies in failure-based maintenance. Conclusions. The improvement of Decision Making Grid model for decision analysis with costing analysis is our contribution in this paper for computerized maintenance management system.

Optimization of equal-cycle maintenance strategy considering imperfect preventive maintenance

2021 ◽  
pp. 095440892110638
Author(s):  
Xinlong Li ◽  
Yan Ran ◽  
Genbao Zhang
Keyword(s):  
Decision Making ◽  
Preventive Maintenance ◽  
Maintenance Cost ◽  
Maintenance Strategy ◽  
Action Unit ◽  
Cost Rate ◽  
Equipment Reliability ◽  
Optimal Maintenance ◽  
Important Means ◽  
Maintenance Decision

Preventive maintenance is an important means to extend equipment life and improve equipment reliability. Traditional preventive maintenance decision-making is often based on components or the entire system, the granularity is too large and the decision-making is not accurate enough. The meta-action unit is more refined than the component or system, so the maintenance decision-making based on the meta-action unit is more accurate. Therefore, this paper takes the meta-action unit as the research carrier, considers the imperfect preventive maintenance, based on the hybrid hazard rate model, established the imperfect preventive maintenance optimization model of the meta-action unit, and the optimization solution algorithm was given for the maintenance strategy. Finally, through numerical analysis, the validity of the model is verified, and the influence of different maintenance costs on the optimal maintenance strategy and optimal maintenance cost rate is analyzed.

Issues on the Compatibility of Web Service Contracts

2013 ◽  
pp. 154-188 ◽  
Author(s):  
Surya Nepal ◽  
John Zic
Keyword(s):  
Web Service ◽  
Service Composition ◽  
Large Scale ◽  
Service Oriented Architecture ◽  
Distributed Applications ◽  
Compatibility Conditions ◽  
Service Contract ◽  
Service Contracts ◽  
Service Oriented ◽  
Application Developers

In the Service Oriented Architecture (SOA) model, a service is characterized by its exchange of asynchronous messages, and a service contract is a desirable composition of a variety of messages. Though this model is simple, implementing large-scale, cross-organizational distributed applications may be difficult to achieve in general, as there is no guarantee that service composition will be possible because of incompatibilities of Web service contracts. We categorize compatibility issues in Web service contracts into two broad categories: (a) between contracts of different services (which we define as a composability problem), and (b) a service contract and its implementation (which we define as a conformance problem). This chapter examines and addresses these problems, first by identifying and specifying contract compatibility conditions, and second, through the use of compatibility checking tools that enable application developers to perform checks at design time.

scholarly journals The Tensor Pade´-Type Approximant with Application in Computing Tensor Exponential Function

2018 ◽  
Vol 2018 ◽  
pp. 1-10
Author(s):  
Chuanqing Gu ◽  
Yong Liu
Keyword(s):  
Orthogonal Polynomials ◽  
Generating Function ◽  
Exponential Function ◽  
Efficient Algorithm ◽  
Linear Functional ◽  
Function Form ◽  
Numerical Examples ◽  
First Time ◽  
Formal Orthogonal Polynomials

Tensor exponential function is an important function that is widely used. In this paper, tensor Pade´-type approximant (TPTA) is defined by introducing a generalized linear functional for the first time. The expression of TPTA is provided with the generating function form. Moreover, by means of formal orthogonal polynomials, we propose an efficient algorithm for computing TPTA. As an application, the TPTA for computing the tensor exponential function is presented. Numerical examples are given to demonstrate the efficiency of the proposed algorithm.

Two-stage flexible warranty decision-making considering downtime loss

2019 ◽  
Vol 234 (3) ◽  
pp. 527-535
Author(s):  
Rui Zheng ◽  
Chun Su ◽  
Yuqiao Zheng
Keyword(s):  
Decision Making ◽  
Preventive Maintenance ◽  
Maintenance Cost ◽  
Service Cost ◽  
Decision Framework ◽  
Two Stage ◽  
Warranty Period ◽  
Second Stage ◽  
Warranty Service ◽  
Warranty Policies

Most existing warranty policies are rigid, and the downtime loss is also not taken into account. This study develops a two-stage decision framework to design flexible warranty policies, where the downtime loss is considered. In the first stage, by minimizing the warranty service cost, a fixed warranty policy is provided to determine the baseline of preventive maintenance’s times and effort. In the second stage, customers have three options to increase preventive maintenance times, preventive maintenance effort, or both of them, which results in three types of flexible warranty policies. The additional maintenance cost for the increased preventive maintenance times and/or preventive maintenance effort is paid by the customers. Besides, the flexible policies are optimized to minimize customer’s cost, which is the sum of the downtime loss and shared maintenance cost. A practical example is provided to illustrate the effectiveness of the proposed flexible warranty policies. The results indicate that compared with the fixed warranty policies, both the manufacturer and customers can benefit from the proposed flexible policies, especially when the downtime loss is substantial. Moreover, the proposed policy is more effective when the warranty period is longer.

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