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Proceedings of the International Manufacturing Engineering Conference & The Asia Pacific Conference on Manufacturing Systems

iMEC-APCOMS 2019: iMEC-APCOMS 2019 pp 24–29Cite as

Optimal Down-Time Target for Performance Based Remanufactured Lease Contract

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Part of the book series: Lecture Notes in Mechanical Engineering ((LNME))

Abstract

To reduce the high cost of purchasing equipment, many companies tend to lease a new or a remanufactured equipment rather than to purchase it. The consumer willing to lease a remanufactured equipment if the lessor ensures a maximum availability of the equipment during a lease contract period. In this paper, the equipment is leased for a period of time with maximum usage per period. If the total usage per period exceeds the maximum usage allowed in the contract, then the customer (as a lessee) will be charged an additional cost. To reach a high availability, the lessor needs a performance based preventive maintenance (pm) policy. Since the lessor objective function is to maximize their profit with keep the reliability as high as possible, then the decision variable for the lessor is to find the optimal down-time allowed and the optimal pm efforts for a given price of the lease. Numerical examples are given to illustrate the optimal solution.

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References

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Acknowledgements

This work is funded by the Ministry of Research, Technology, and Higher Education of the Republic of Indonesia through the scheme of “PUPT 2019”.

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Authors and Affiliations

  1. Department of Industrial Engineering, Langlangbuana University, Jl. Karapitan no 116, Bandung, 40261, Indonesia

    Hennie Husniah

  2. Department of Industrial Engineering, Institut Teknologi Bandung, Jl. Ganesha 10, Bandung, 40132, Indonesia

    Andi Cakravastia & Bermawi P. Iskandar

Authors
  1. Hennie Husniah
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  2. Andi Cakravastia
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  3. Bermawi P. Iskandar
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Corresponding author

Correspondence to Hennie Husniah .

Editor information

Editors and Affiliations

  1. Faculty of Manufacturing Engineering, Universiti Malaysia Pahang, Pekan, Pahang, Malaysia

    Muhammed Nafis Osman Zahid

  2. Faculty of Manufacturing Engineering, Universiti Malaysia Pahang, Pekan, Pahang, Malaysia

    Radhiyah Abd. Aziz

  3. Faculty of Manufacturing Engineering, Universiti Malaysia Pahang, Pekan, Pahang, Malaysia

    Ahmad Razlan Yusoff

  4. Faculty of Manufacturing Engineering, Universiti Malaysia Pahang, Pekan, Pahang, Malaysia

    Nafrizuan Mat Yahya

  5. Faculty of Manufacturing Engineering, Universiti Malaysia Pahang, Pekan, Pahang, Malaysia

    Fazilah Abdul Aziz

  6. Faculty of Manufacturing Engineering, Universiti Malaysia Pahang, Pekan, Pahang, Malaysia

    Mohd Yazid Abu

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Cite this paper

Husniah, H., Cakravastia, A., Iskandar, B.P. (2020). Optimal Down-Time Target for Performance Based Remanufactured Lease Contract. In: Osman Zahid, M., Abd. Aziz, R., Yusoff, A., Mat Yahya, N., Abdul Aziz, F., Yazid Abu, M. (eds) iMEC-APCOMS 2019. iMEC-APCOMS 2019. Lecture Notes in Mechanical Engineering. Springer, Singapore. https://doi.org/10.1007/978-981-15-0950-6_4

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  • DOI: https://doi.org/10.1007/978-981-15-0950-6_4

  • Published:

  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-15-0949-0

  • Online ISBN: 978-981-15-0950-6

  • eBook Packages: EngineeringEngineering (R0)

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