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New and used items with two dimensional lease contracts
Husniah H.a, Pasaribu U.S.b, Iskandar P.b
a Department of Industrial Engineering, Langlangbuana University, Bandung, 40261, Indonesia
b Department Mathematics, Bandung Institute of Technology, Bandung, 40132, Indonesia
[vc_row][vc_column][vc_row_inner][vc_column_inner][vc_separator css=”.vc_custom_1624529070653{padding-top: 30px !important;padding-bottom: 30px !important;}”][/vc_column_inner][/vc_row_inner][vc_row_inner layout=”boxed”][vc_column_inner width=”3/4″ css=”.vc_custom_1624695412187{border-right-width: 1px !important;border-right-color: #dddddd !important;border-right-style: solid !important;border-radius: 1px !important;}”][vc_empty_space][megatron_heading title=”Abstract” size=”size-sm” text_align=”text-left”][vc_column_text]In this paper, we study a two dimensional lease equipment contract for new and used equipments. The two dimensional lease contract is characterized by two parameters – age and usage limits. Under the lease contract, the lessee agrees that an additional cost will be charged when the usage rate exceeds a threshold value. We consider that the degradation of the equipment is affected by the age and usage of the equipment, and modelled by using a one dimensional approach. The lessor performs both preventive and corrective maintenance actions, and the preventive maintenance action will reduce the equipment failure rate and hence it will decrease the corrective maintenance cost during the lease contract. The decision problem for the lessor is to find the optimal price of each lease option offered, and for the lessee is to select the best lease option. The decision problems for the lessor and the lessee are modelled using a Stackelberg game theory formulation, and the optimal decisions for the lessor and the lessee are obtained by maximizing the expected profit for each party.[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Author keywords” size=”size-sm” text_align=”text-left”][vc_column_text]Corrective maintenance,Equipment failures,Expected profits,Imperfect preventive maintenance,One-dimensional approach,Optimal decisions,Preventive and corrective maintenance,Used equipment[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Indexed keywords” size=”size-sm” text_align=”text-left”][vc_column_text]Expected profit,Imperfect preventive maintenance,New and used equipments,Two dimensional lease contract[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Funding details” size=”size-sm” text_align=”text-left”][vc_column_text]This work is funded by the Ministry of Research, Technology, and Higher Education of the Republic of Indonesia through the scheme of “PUPT 2017” with contract number SP DIPA-042.06.1.401516/2017.[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”DOI” size=”size-sm” text_align=”text-left”][vc_column_text][/vc_column_text][/vc_column_inner][vc_column_inner width=”1/4″][vc_column_text]Widget Plumx[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][/vc_column][/vc_row]