Stochastic system in discrete preventive maintenance and service contract

Abstract

This paper deals with a stochastic system and maintenance service contract. We consider a situation where an agent offers more then one service contract option and a company as the owner has to select the optimal option. This case is typically found in a mining industry where the original equipment manufacturer (OEM) is the only maintenance service provider. As repair time is related to the revenue of the company, service contract options need to consider the repair time target. We consider the repair time target from both the owner and OEM point of views. As an illustration, we give a numerical example with weibull failure distribution.