Modelling and analysis of maintenance contract with imperfect preventive maintenance

In this paper, we study two dimensional maintenance contracts for a dump truck operated in a mining industry. To keep the truck in a good operational condition, an imperfect preventive maintenance (PM) policy is applied. When the truck fails then corrective maintenance (CM) is done. PM and/or CM can be outsourced to an external agent for economic reason. The situation under study is that an agent offers two dimensional service contract to the owner of the trucks and the agent's decision problem has to select the optimal PM degree according to various usage pattern and the operational condition that maximizes the expected profit. We use a Nash game theory formulation in order to obtain a win-win solution - i.e. the optimal strategy (pricing structure) for the agent and the owner.