Article ID: | iaor200771 |
Country: | Netherlands |
Volume: | 91 |
Issue: | 7 |
Start Page Number: | 772 |
End Page Number: | 777 |
Publication Date: | Jul 2006 |
Journal: | Reliability Engineering & Systems Safety |
Authors: | Murthy D.N.P., Pongpech J. |
Keywords: | preventative maintenance |
For leased equipment the lessor incurs penalty costs for failures occurring over the lease period and for not rectifying such failures within a specified time limit. Through preventive maintenance actions the penalty costs can be reduced but this is achieved at the expense of increased maintenance costs. The paper looks at a periodic preventive maintenance policy which achieves a tradeoff between the penalty and maintenance costs.