Maintenance outsourcing contracts for new technology adoptions

Fu Shiang Tseng, Kwei Tang, Herbert Moskowitz, Robert Plante

研究成果: 雜誌貢獻期刊論文同行評審

10 引文 斯高帕斯(Scopus)


An external contractor receives a payment from a manufacturer for periodically performing preventive maintenance and for performing minimal repairs whenever process failures occur. Suppose a new technology will be available in the future, but the timing is uncertain. We propose specifying one or multiple time points in a maintenance contract, at which the manufacturer can adopt (switch to) the new technology, if it becomes available, and change the preventive maintenance schedule for the remaining time in the contract period. A model is developed to determine the value of using these (switch) points in a maintenance contract to the manufacturer. The numerical results show that, with a higher arrival rate of the new technology, the value becomes greater, and thus, the optimal switch point should be set earlier. Furthermore, if the new technology reduces maintenance costs, using switch points adds more value to a cost-plus-margin method than either the fixed payment or cost-plus-fixed-fee methods. On the other hand, if adopting the new technology results in higher maintenance costs, the value using switch points is higher for the fixed payment method.

頁(從 - 到)203-218
期刊IEEE Transactions on Engineering Management
出版狀態已出版 - 2009


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