Two dimensional maintenance contract with coordination between owner and agent

A two dimensional maintenance contracts with coordcination between two parties is studied in this paper. The contract is applied to a dump truck operated in a mining industry. The situation under study is that an agent offers two dimensional service contract to the owner of the truck. The owner's decision to get high availability and the agent's decision to minimize the total maintenance cost are coordinated in order to reach a win-win solution. In addition, we consider the use of incentive contracts to the agent based on a combination of a target uptime level and a bonus. This is done in order to obtain a win-win situation and provides flexibility in allocating the extra profit generated from coordination.