Notice of Retraction Managing performance based contract of repairable system under three replacement policies

Abstract

This paper investigates a discrete event simulation approach for planning performance based contract of repairable system. We focus on an integrated service delivery environment where the manufacturer develops capital-intensive systems and also provides after-sales support. We propose a simulation model to calculate system availability comprehending three performance drivers: life time distribution, repair time distribution, and spare parts inventory. This simulation model allows the service supplier to minimize the total cost across optimizing the system design, maintenance time, and spare part inventory level. In this simulation model, the failure time and repair time can follow arbitrary distribution. This will allow the customer to monitor the supplier's service through comparing the actual availability and theory availability. The expected costs per unit time under three replacement policies also are compared.