A customized two-dimensional extended warranty with preventive maintenance

2017 ◽  
Vol 257 (3) ◽  
pp. 971-978 ◽  
Author(s):  
Yeu-Shiang Huang ◽  
Chao-Da Huang ◽  
Jyh-Wen Ho
Keyword(s):  
Preventive Maintenance ◽  
Two Dimensional ◽  
Extended Warranty

scholarly journals Research on Pricing of Flexible Two-Dimensional Extended Warranty Considering Preventive Maintenance

2019 ◽  
Vol 37 (2) ◽  
pp. 393-400
Author(s):  
Xiaolei Zhang ◽  
Chun Su
Keyword(s):  
Preventive Maintenance ◽  
Two Dimensional ◽  
Maintenance Strategy ◽  
Pricing Model ◽  
Reduction Model ◽  
Warranty Period ◽  
Extended Warranty ◽  
Warranty Cost ◽  
Usage Rates

Facing the uncertainty in transaction of two-dimensional extended warranty, a flexible pricing model is presented considering imperfect preventive maintenance combined with the degradation characteristics of item. The measure of two-dimensional preventive maintenance is carried out based on specified age interval or usage interval, the effect of imperfect preventive maintenance is described by age reduction model. The extended warranty cost is modeled from the perspective of manufacturer and customer, the method of gridding search is employed to optimize the maintenance strategy under different cases. Moreover, customized extended warranty price and warranty services are proposed on the basis of consumer usage rates. The results demonstrate that it is helpful to maximize the benefit of vendor by providing customized warranty strategy, the implementation of preventive maintenance during the whole warranty period can effectively reduce warranty cost for both sides.

scholarly journals Customized Preventive Maintenance Strategies for Products Sold with Two-Dimensional Warranty

2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Fangqi Dong ◽  
Huaqiang Wang ◽  
Feng Men ◽  
Lijun Liang
Keyword(s):  
Numerical Analysis ◽  
Preventive Maintenance ◽  
Programming Model ◽  
Two Dimensional ◽  
Maintenance Costs ◽  
Maintenance Strategies ◽  
Warranty Period ◽  
Extended Warranty ◽  
Warranty Cost ◽  
Warranty Costs

Two-dimensional warranty has played a significant role in improving product quality and competitiveness. However, two-dimensional basic warranty (BW) and extended warranty (EW) have not yet been combined effectively, and the customized maintenance strategies based on the consumers’ heterogeneity have been quite limited, which result in high maintenance costs. In this paper, the possibility of reducing warranty cost over BW and EW is explored by classifying customers based on their usage rates and then offering them with customized preventive maintenance (PM) strategies. By considering the purchasing ratio of EW contracts, the PM strategies for BW and EW are closely combined by the bi-level programming model. Numerical analysis is given to show the application of the proposed warranty strategy, and the significant findings and sensitivity of the main parameters are analyzed in the end. The findings demonstrate that the customized PM strategies combining BW and EW can effectively reduce warranty costs within the warranty period and provide a scientific guidance for manufacturers to design a more reasonable PM strategy.

Failure modeling and optimizing preventive maintenance strategy during two-dimensional extended warranty contracts

2013 ◽  
Vol 28 ◽  
pp. 90-102 ◽  
Author(s):  
Kamran Shahanaghi ◽  
Rassoul Noorossana ◽  
Seyed Gholamreza Jalali-Naini ◽  
Majeed Heydari
Keyword(s):  
Preventive Maintenance ◽  
Two Dimensional ◽  
Maintenance Strategy ◽  
Failure Modeling ◽  
Extended Warranty

Preventive maintenance optimization for repairable products considering two-dimensional warranty and customer satisfaction

2018 ◽  
Vol 233 (4) ◽  
pp. 553-566
Author(s):  
Yukun Wang ◽  
Yiliu Liu ◽  
Aibo Zhang
Keyword(s):  
Customer Satisfaction ◽  
Preventive Maintenance ◽  
Product Performance ◽  
Maintenance Optimization ◽  
Two Dimensional ◽  
Maintenance Strategy ◽  
Minimal Repair ◽  
Proposed Model ◽  
Useful Life ◽  
Practical Implications

Customer satisfaction with a purchased product is closely related to the product performance within the warranty region and even the performance during the remainder of its useful life. Every satisfied customer may boost the future sales of the same product with positive evaluations and recommendations to others, and thus will create more profits for the manufacturer. During the useful life of the product, the expected cost to the manufacturer normally depends on the warranty policy, product reliability and specific servicing strategies implemented. In this article, considering the effect of customer satisfaction on the manufacturer’s incurred cost, we investigate a periodic and imperfect preventive maintenance strategy for repairable products sold with a two-dimensional warranty policy. The customer satisfaction is measured with the probability of the customer making a repeat purchase from the same manufacturer. In the proposed model, the number of preventive maintenance actions and corresponding maintenance level are jointly derived with the objective of minimizing the expected total cost per product to the manufacturer. The performance of the proposed preventive maintenance strategy is compared with that of minimal repair corrective maintenance strategy in a numerical example, so as to illustrate its applicability. In addition, some practical implications from a detailed sensitivity analysis are elaborated.

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