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Bi-level optimization for maintenance service contracts involving three parties using genetic algorithm

Sa’Idah N.F.a, Cakravastia A.a, Pasaribu U.S.a, Iskandar B.P.a

a Graduate Program in Industrial Engineering and Management, Bandung Institute of Technology, Bandung, 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]© 2017 IEEE.This paper deals with a Maintenance Service Contract (MSC) involving three parties – Manufacturer, Service Agent and Customer. We formulate decision problems of the three parties using Stackelberg game theory formulation and integrate the three interdependent decision models using a bi-level optimization formulation. As the objective functions and their constraints are all in non-linier form, then we need to use Karush-kuhn Tucker condition to convert the optimization problem into a single level optimization. A genetic algorithm is used to obtain the optimal solution (i.e. the best option and its optimal price) 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]Bi-level optimization,Decision problems,Karush Kuhn tucker condition,Maintenance services,Objective functions,Optimization problems,Stackelberg Games,Three-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=”Indexed keywords” size=”size-sm” text_align=”text-left”][vc_column_text]bilevel optimization,genetic algorithm,karush-kuhn tucker condition,Maintenance service contract,three-parties[/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 research is funded by RISTEK-DIKTI (Kementerian Riset Teknologi dan Pendidikan Tinggi) – PMDSU (Program Pendidikan Magister Menuju Doktor untuk Sarjana Unggul), Indonesia.[/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]https://doi.org/10.1109/IEEM.2017.8290224[/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]