Abstract:The performance-based logistics is a new support strategy, which has been widely applied in aviation, defense, energy, etc. Based on the functional check model for the single component system with two-stage failure process, this paper establishes the revenue rate and profit rate function through associating the supplier′s revenue and availability. The maintenance decision model is formulated based on the performance-based logistics. Then, the effectiveness of the model is evaluated through a numerical example of steam turbine blades. Compared with the cost minimization, results show that the profit and availability of the proposed policy are increased by 2. 19% and 0. 079% , respectively. Compared with the availability maximization, the profit is increased by 26. 61% and the cost is reduced by 13. 35% . These results prove that the proposed policy can achieve multi-objective requirements at the same time. The profit could be maximized and the system performance could be improved at a lower cost. Finally, the sensitivity analysis of maintenance cost and downtime is carried out, which is helpful to determine the optimal inspection interval and profit rate.