Learning and forgetting effects on maintenance outsourcing

This article studies the effects of learning and forgetting on the design of maintenance outsourcing contracts. Consider a situation in which a manufacturer offers an outsourcing contract to an external contractor to maintain a manufacturing process. Under the contract, the contractor schedules and...

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Veröffentlicht in:IIE transactions 2013-04, Vol.45 (4), p.449-463
Hauptverfasser: Tarakci, Hakan, Tang, Kwei, Teyarachakul, Sunantha
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description This article studies the effects of learning and forgetting on the design of maintenance outsourcing contracts. Consider a situation in which a manufacturer offers an outsourcing contract to an external contractor to maintain a manufacturing process. Under the contract, the contractor schedules and performs preventive maintenance and repairs the process whenever a breakdown occurs. Two types of learning effects on the cost and time of performing preventive maintenance are considered: learning from experience (natural) and learning by a costly effort/investment. It is assumed that forgetting occurs under each learning type. A model is developed for designing an optimal outsourcing contract to maximize the manufacturer's profit. An extensive numerical analysis is carried out to empirically demonstrate the effects of learning and forgetting on the optimal maintenance contract and the manufacturer's profit.
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ispartof IIE transactions, 2013-04, Vol.45 (4), p.449-463
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1545-8830
2472-5862
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source EBSCO Business Source Complete; Taylor & Francis Journals Complete
subjects Contractors
cost subsidization
forgetting
learning
Maintenance outsourcing
Manufacturers
Numerical analysis
Organizational learning
Outsourcing
Preventive maintenance
Purchasing contracts
Studies
title Learning and forgetting effects on maintenance outsourcing
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