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政大典藏 > College of Commerce > Department of Business Administation > Periodical Articles > Item 140.119/70634

Please use this identifier to cite or link to this item: https://nccur.lib.nccu.edu.tw/handle/140.119/70634

Title:	Incentive maintenance outsourcing contracts for channel coordination and improvement
Authors:	唐揆 Tang, Kwei
Contributors:	企管系
Date:	2006.08
Issue Date:	2014-10-16 18:00:32 (UTC+8)
Abstract:	Consider a manufacturer who has a process with an increasing failure rate over time. In order to improve the process performance, the following two types of maintenance activity are outsourced to an external contractor: (i) preventive maintenance is performed periodically to improve the reliability of the process when the process is functional; and (ii) corrective maintenance is used to restore the process to a specified condition when it fails. We consider the use of incentive contracts to induce the contractor to select the maintenance policy that optimizes the total profit of the manufacturer and contractor. It is demonstrated that an incentive contract based on a combination of a target uptime level and a bonus always leads to the desired win-win coordination, and provides flexibility in allocating the extra profit generated from coordination and, importantly, an incentive to the contractor to improve the efficiency of the maintenance operations. The incentive contract can also be used to select the most economically efficient contractor from multiple contractors with different maintenance capabilities.
Relation:	IIE Transactions, 38(8), 671-684
Data Type:	article
DOI link:	http://dx.doi.org/10.1080/07408170600692259
DOI:	10.1080/07408170600692259
Appears in Collections:	[Department of Business Administation] Periodical Articles

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