Strategic Maintenance Decision Making using Real Options

• Author / Creator

  Priyanka Arora

• Maintenance decisions impact company's costs and profits in various ways. These decisions can be incurred as a part of everyday repairs or heavy replacements or as an investment in future asset or technology. Large corporations with physical assets have maintenance practices to ensure proper operations and to minimize costs. With innovation and development, it is possible to improve the maintenance practices to implement a more effective future technology. These changes may require significant investment decisions, and therefore, it becomes critical for decision-makers to use the best available information with respect to market conditions and potential benefits of every future option under consideration. In this study, condition-based maintenance practice is analyzed in different scenarios, both qualitatively and quantitatively. A strategic maintenance decision for future investment is evaluated using real options approach. The proposed framework is then explored for the airline and trucking industries.

• Subjects / Keywords

  • Maintenance
  • Decision Making
  • Real Options

• Graduation date

  Spring 2022

• Type of Item

  Thesis

• Degree

  Master of Science

• DOI

  https://doi.org/10.7939/r3-nmn2-8488

• License

  This thesis is made available by the University of Alberta Libraries with permission of the copyright owner solely for non-commercial purposes. This thesis, or any portion thereof, may not otherwise be copied or reproduced without the written consent of the copyright owner, except to the extent permitted by Canadian copyright law.