This paper presents a mathematical model of aggregate planning for the service division of vending machines, which determines its workforce size and the preventive maintenance level that may affect the failure rate. The unique aspect of this problem is that it exhibits two types of failures requiring different repair and preventive maintenance. The practice is to divide the service division into two groups, within which there are hierarchies according to these types of failures, and in each group, there are full-time workers with annual contracts and temporary workers hired only during the peak season. A case study based on actual operational data demonstrates how effective the introduced model and the policy are in reducing the total cost and improving the quality of service, and thus enhancing the overall system performance of the service division. We perform sensitivity analysis on key parameters, which helps us change maintenance strategies under diverse operating situations.
All Science Journal Classification (ASJC) codes
- Management Information Systems
- Strategy and Management
- Management Science and Operations Research