Valuation of performance-based contracts for capital equipment: A stochastic programming approach

References

• Beggs, J., Ertel, B. and Jones, M. ( 2005) Performance-based logistics perspective. Booz Allen Hamilton Inc., McLean, VA.
   Google Scholar
• Birge, J.R. and Louveaux, F. ( 2011) Introduction to stochastic programming. Springer Science & Business Media, New York, NY.
   Google Scholar
• Cassady, C.R., Pohl, E.A. and Jin, S. ( 2004) Managing availability improvement efforts with importance measures and optimization. IMA Journal of Management Mathematics, 15(2), 161–174.
   Google Scholar
• Defense Acquisition University Press. ( 2005) Performance based logistics: a program manager's product support guide. Defense Acquisition University Press, Ft. Belvoir, VA.
   Google Scholar
• Doerr, K.H. and Kang, K. ( 2014) Bi-criteria risk analysis of domain-specific and cross-domain changes in complex systems. Computers & Industrial Engineering, 73, 51–60.
   Web of Science ®Google Scholar
• Gansler, J.S. and Lucyshyn, W. ( 2006) Evaluation of performance based logistics. No. UMD-LM-06-040. Maryland University College Park Center for Public Policy and Private Enterprise, College Park, MD.
   Google Scholar
• Jardine, A.K.S. and Tsang, A.H. ( 2006) Maintenance, replacement and reliability: theory and applications. CRC Press, Boca Raton, FL.
   Google Scholar
• Kang, K., Doerr, K.H., Apte, U. and Boudreau, M. ( 2010) Decision support models for valuing improvements in component reliability and maintenance. Military Operations Research, 15(4), 55–68.
   Web of Science ®Google Scholar
• Kim, S., Cohen, M. and Netessine, S. ( 2007) Performance contracting in after-sales service supply chains. Management Science, 53(12), 1843–1858.
   Web of Science ®Google Scholar
• Kim, S., Cohen, M. and Netessine, S. ( 2011) Reliability or inventory? Analysis of product support contracts in the defense industry. Working Paper. Yale University, New Haven, CT.
   Google Scholar
• King, A.J. ( 2002) Duality and martingales: a stochastic programming perspective on contingent claims. Mathematical Programming, 91(3), 543–562.
   Web of Science ®Google Scholar
• Kira, D., Kusy, M. and Rakita, I. ( 2000) The effect of project risk on capital rationing under uncertainty. The Engineering Economist, 45(1), 37–55.
   Google Scholar
• Kwon, R.H., Scott Rogers, J. and Yau, S. ( 2006) Stochastic programming models for replication of electricity forward contracts for industry. Naval Research Logistics (NRL), 53(7), 713–726.
   Web of Science ®Google Scholar
• McDonald, R. and Roland, M. ( 2009) Pay for performance in primary care in England and California: comparison of unintended consequences. The Annals of Family Medicine, 7(2), 121–127.
   PubMed Web of Science ®Google Scholar
• Nowicki, D., Kumar, U., Steudel, H. and Verma, D. ( 2006) Spares provisioning under performance-based logistics contract: profit-centric approach. Journal of the Operational Research Society, 59(3), 342–352.
   Web of Science ®Google Scholar
• Rockafellar, R.T. and Uryasev, S. ( 2000) Optimization of conditional value-at-risk. Journal of Risk, 2, 21–42.
   Google Scholar
• Sarper, H. ( 1993) Capital rationing under risk: a chance constrained approach using uniformly distributed cash flows and available budgets. The Engineering Economist, 39(1), 49–76.
   Google Scholar
• Schulz, A.K., Wu, A. and Chow, C.W. ( 2010) Environmental uncertainty, comprehensive performance measurement systems, performance-based compensation, and organizational performance. Asia-Pacific Journal of Accounting & Economics, 17(1), 17–39.
   Web of Science ®Google Scholar
• Selviaridis, K. and Wynstra, F. ( 2015) Performance-based contracting: a literature review and future research directions. International Journal of Production Research, 53(12), 3505–3540.
   Web of Science ®Google Scholar
• Wallace, S.W. and Fleten, S.E. ( 2003) Stochastic programming models in energy. Handbooks in Operations Research and Management Science, 10, 637–677.
   Google Scholar
• Yau, S., Kwon, R.H., Scott Rogers, J. and Wu, D. ( 2011) Financial and operational decisions in the electricity sector: contract portfolio optimization with the conditional value-at-risk criterion. International Journal of Production Economics, 134(1), 67–77.
   Web of Science ®Google Scholar