Optimal preventive maintenance model for leased equipment with penalty (the number of failures η ≥ 1)

This research presents the sequential preventive maintenance policy model with the number of acceptance failures for leased equipment. The model is expressed as the lessor´s perspective to obtain the optimal number of preventive maintenance, the times to maintenance and the effectiveness of each action. The authors focus on a penalty that is guaranteed the limited number of failures occurred during the contract period. The total expected cost of maintenance is computed using MATLAB program. Sensitivity analysis is also conducted of some influenced parameters to determine the minimization of maintenance cost for each scenario.