Outsourcing Maintenance and Spare Parts Logistics under Performance Contracting (基于可靠性表现合同的外包维修及备件物流)

Tongdan Jin
Tongdan Jin is an Assistant Professor of Industrial Engineering at Texas State University. Prior to the academia, he held a reliability engineer position for five years at Teradyne Inc. He obtained the Ph.D. in Industrial & Systems Engineering from Rutgers University. His research interests include system reliability modeling and optimization, design for reliability in Six Sigma, and system ma...read more


Abstract: A growing number of equipment manufacturers start to adopt integrated product-service system (IPSS). This new paradigm enables the supplier to reap the profitability in the after-sales market by offering maintenance and spare parts services, while the customer can lower the asset ownership cost with assured system availability. A main challenge in managing the IPSS contract has to do with the so-called moral hazard. A moral hazard is a situation where one player is more likely to take risks because the resulting costs will be borne by the other. These risks include system usage, operating condition, spare parts stocking, repair capacity and technicians’ skill sets, among others. We propose a game-theoretic maintenance outsourcing model to maximize the utilities of all the players. We prove that the actions of the manufacturer and the customer are fully observable with each other. Hence a full contracting efficiency is guaranteed without moral hazard. Speaker Bio: Dr. Tongdan Jin is an Associate Professor in The Ingram School of Engineering at Texas State University. Prior to academia, he held a reliability engineer position for five years in Teradyne Inc., Boston. He obtained his Ph.D. in Industrial and Systems Engineering, and MS in Electrical and Computer Engineering, both from Rutgers University. His BS degree in Electrical and Automation Engineering is from Shaanxi University of Science Technology, China. He has authored and co-authored dozens of papers published in leading journals of reliability and quality, supply chain, and renewable energy. He is a recipient of Evans-McElroy best paper in Reliability and Maintainability Symposium in 2014. He also serves as the peer reviewers for many journals including INFORMS journal series, IEEE Transaction series, and IIE Transactions.

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