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Full-Text Articles in Mechanical Engineering
Maintenance Outsourcing Of A Multi-Process Manufacturing System With Multiple Contractors, Hakan Tarakci, Kwei Tang, Herb Moskowitz, Robert Plante
Maintenance Outsourcing Of A Multi-Process Manufacturing System With Multiple Contractors, Hakan Tarakci, Kwei Tang, Herb Moskowitz, Robert Plante
Hakan Tarakci
Consider a manufacturer with a manufacturing system that consists of multiple processes. The manufacturer’s revenue is determined by the minimum of the uptimes among the processes. The maintenance functions of the processes are outsourced to independent contractors so that each contractor is responsible only for one process. A performance-based incentive contract is offered to each contractor, consisting of an uptime target level and a bonus rate for exceeding the uptime target. Under the incentive contract, a contractor receives a bonus only when the achieved uptime exceeds the target level specified in the contract. We develop a model for jointly determining …
Incentive Maintenance Outsourcing Contracts For Channel Coordination And Improvement, Hakan Tarakci, Kwei Tang, Herb Moskowitz, Robert Plante
Incentive Maintenance Outsourcing Contracts For Channel Coordination And Improvement, Hakan Tarakci, Kwei Tang, Herb Moskowitz, Robert Plante
Hakan Tarakci
Consider a manufacturer who has a process with an increasing failure rate over time. In order to improve the process performance, the following two types of maintenance activity are outsourced to an external contractor: (i) preventive maintenance is performed periodically to improve the reliability of the process when the process is functional; and (ii) corrective maintenance is used to restore the process to a specified condition when it fails. We consider the use of incentive contracts to induce the contractor to select the maintenance policy that optimizes the total profit of the manufacturer and contractor. It is demonstrated that an …