We propose a maintenance policy for new equipment on a repair-refund maintenance strategy in this paper and derive the optimal lease period from the lessor’s perspective based on independent and identical distribution of historical failure data which obey power law process. The cost model of a full refund and a proportional refund is studied, and the corresponding optimal leasing period is determined by reducing the expected total cost rate to the largest extent. We use a numerical example to illustrate the proposed cost model and analyze the sensitivity of related parameters. Furthermore, we show that the proportional refund policy is preferable than a full refund to the lessor. Finally, according to the simulation outcome, the proposed methods are effective and instructions for lessor in regard to equipment lease are provided.
Background:With the progress of technology and people's awareness of environmental protection, more and more used equipment flows into the market. But the lessee is most concerned about the functionality and reliability of the equipment, because fault downtime and repair will lead to the loss of production.
Objective:In order to solve this problem, we propose a maintenance scheme for the used equipment using fixed failure rate reduction method.
Method:An efficient enumeration algorithm is given to derive the optimal PM policy.
Results:In case study, the proposed policy is compared with the performance of other approach through examples.
Conclusions:Numerical examples illustrate that the proposed maintenance strategy is practical and it can provide effective decision support for leasing company.
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