Optimal decision making in a maintenance service operation

Optimal decision making in a maintenance service operation

0.00 Avg rating0 Votes
Article ID: iaor20001997
Country: Netherlands
Volume: 116
Issue: 2
Start Page Number: 259
End Page Number: 273
Publication Date: Jul 1999
Journal: European Journal of Operational Research
Authors: ,
Keywords: game theory
Abstract:

In recent years, there has been a dramatic increase in the outsourcing of equipment maintenance with the maintenance being carried out by an external agent rather than in-house. Often, the agent offers more than one option and the owners of equipment (customers) are faced with the problem of selecting the optimal option. The optimal choice depends on their attitude to risk and the parameters of the different options. The agent needs to take these issues into account in the optimal selection of the parameters for the different options and this requires a game theoretic formulation. The paper deals with one such model formulation to determine the agent's optimal strategy with regard to the pricing structure, the number of customers to service and the number of service channels.

Reviews

Required fields are marked *. Your email address will not be published.