After-Sales Services During an Asset’s Lifetime: Collaborative Planning of System Upgrades

We consider a physical asset consisting of complex systems, where the systems may require upgrades during lifetime asset. In practice, owner and system supplier can make upgrade decisions together, requiring decision-support model that be jointly used to optimize total benefit for both parties. Motivated by real-life use case including an supplier, we build continuous-time fixed our model, capture key critical factors drive decisions: increasing functionality requirements due evolving technology, age-dependent maintenance costs, predetermined overhaul plan asset, A is less costly if it executed with overhaul. first analyze no additional cost upgrading outside analytically characterize structure optimal policy under various realistic assumptions lead different types functions. then these results as building block generalized function. When there penalty moment, propose dynamic programming approach efficiently determines using analytical results. also prove this increases, only change one number not overhauls reduced. However, nonincreasing function penalty. Also, surprisingly, more smaller policy. Funding: This publication part project “Maritime Remote Control Tower Service Logistics Innovation (MARCONI)” (project 439.18.309) research program “Integrator-Logistics Enabler Enhancing Society,” which (partly) financed Dutch Research Council (NWO).