Optimal number of fleet maintenance contract with policy limit cost

In this paper, we study a two-dimensional maintenance contract for a fleet of trucks such as dump truck operated in a mining industry. The trucks are sold with a two-dimensional warranty. The warranty and the maintenance contract are characterized by two parameters (i.e. age and usage limits) which define a 2-dimensional region. The maintenance service contracts studied is the one which offers policy limit cost to protect a service provider (an agent) from over claim and to pursue the owner to do maintenance under specified cost inhouse. This in turn gives benefit for both the owner of the trucks and the agent of service contract. The decision problem for an agent is to determine the optimal price for each options offered and for the owner is to select the best contract option. We use a Nash game theory formulation in order to obtain a win-win solution - i.e. the optimal price for the agent and the optimal option for the owner.