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<title>On The Application Of Copula In Modeling Maintenance Contract</title>
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<namePart>H. Husniah</namePart>
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<namePart>B. P. Iskandar</namePart>
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<dateIssued>2015</dateIssued>
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<note>Abstract
This paper deals with the application of copula in maintenance contracts for a nonrepayable item. Failures of the item are modeled using a two dimensional approach where age and usage of the item and this requires a bi-variate distribution to modelling failures. When the item fails then corrective maintenance (CM) is minimally repaired. CM can be outsourced to an external agent or done in house. The decision problem for the owner is to find the maximum total profit whilst for the agent is to determine the optimal price of the contract. We obtain the mathematical models of the decision problems for the owner as well as the agent using a Nash game theory formulation.</note>
<subject authority=""><topic>maintenance contract</topic></subject>
<subject authority=""><topic>non-cooperative game theory</topic></subject>
<subject authority=""><topic>twodimensional maintenance region</topic></subject>
<subject authority=""><topic>bivariate copula</topic></subject>
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