Pricing of full-service repair contracts

被引:29
作者
Huber, Sebastian [1 ]
Spinler, Stefan [1 ]
机构
[1] WHU Otto Beisheim Sch Management, Kuhne Fdn Endowed Chair Logist Management, D-56179 Vallendar, Germany
关键词
Service contracts; Contract pricing; Risk management; Mean-variance customer utility; MAINTENANCE; EQUIPMENT;
D O I
10.1016/j.ejor.2012.04.012
中图分类号
C93 [管理学];
学科分类号
12 ; 1201 ; 1202 ; 120202 ;
摘要
Full-service repair contracts are becoming increasingly popular, especially as an add-on to leasing contracts for technical investment products. This paper presents a model for pricing full-service repair contracts in the presence of risk-averse customers. The model identifies the optimal portfolio of full-service contracts and on-call service agreements to be offered by the service provider. The optimal full-service price is established, with failure arrivals being modeled as Poisson events and the cost of individual failures being stochastic. An existing on-call service business represents the price benchmark. The model is readily applicable for any service provider for small investment products such as special-purpose trucks or printing equipment. (C) 2012 Elsevier B.V. All rights reserved.
引用
收藏
页码:113 / 121
页数:9
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