A Two-dimensional Maintenance Service Contract Considering Availability and Maintenance Cost

In this paper, we study a two- dimensional Maintenance Service Contract (MSC) characterized by two limits (dimensions) of age and usage. It is considered that an agent offers a two-dimensional MSC by guaranteeing a certain level of equipment available to consumers. The agent needs to reduce the total maintenance cost to offer competitive MSC prices. Preventive maintenance actions (PM) are periodically carried out, and each PM action is considered to improve reliability modeled by reducing the failure rate function. Two decision variables (the PM interval (T) and the reduction in the intensity function (delta)) are obtained by considering two performance measures that are relevant to agents and consumers (i.e., availability and total maintenance cost). A numerical example is presented by considering three types of equipment usage rates: low, medium, and high. The optimization of the two performance measures can ensure availability targets and, at the same time, minimize total maintenance costs.