Optimal design of sales and maintenance under the renewable warranty

2018 ◽  
Vol 52 (2) ◽  
pp. 529-542 ◽  
Author(s):  
Can Jiao ◽  
Xiaoyan Zhu
Keyword(s):  
New Product ◽  
Repair Time ◽  
Replacement Policy ◽  
Sales Growth ◽  
Minimal Repair ◽  
Profit Model ◽  
Sales Price ◽  
Warranty Period ◽  
Total Profit ◽  
Warranty Cost

This paper presents an integrated model to determine the optimal sales price, preventive maintenance (PM) interval and warranty period with the objective of maximizing the total profit. It is assumed that the sales growth can be featured by NHPP-Bass model over the time. Production cost, R&D cost and warranty cost involving product reliability are considered in this integrated profit model. Then, we consider a periodic PM policy, minimal repair and replacement policy in this paper and the product is deteriorated with the time goes. We also consider effects of the repair time of the repairable product. During the warranty period, manufacturer conducts the PM periodically, and if the repair time is beyond the limited repair time, the failure is replaced with a new product attached renewed warranty period. If not, the failed product is conducted with only minimal repair. Moreover, we give the numerical example and the sensitive analysis to provide insights into the influence of sales price, warranty period and PM interval.

WARRANTY COST ANALYSIS: RENEWING WARRANTY WITH NON-ZERO REPAIR TIME

2004 ◽  
Vol 11 (02) ◽  
pp. 93-112 ◽  
Author(s):  
S. CHUKOVA ◽  
Y. HAYAKAWA
Keyword(s):  
Repair Time ◽  
Replacement Policy ◽  
Numerical Examples ◽  
Warranty Period ◽  
Alternating Renewal Process ◽  
Free Replacement ◽  
Warranty Cost ◽  
Warranty Costs ◽  
Warranty Claims ◽  
The Cost

The main focus of this study is on the modeling of the warranty claims and evaluating the warranty expenses. The cost of each warranty claim depends on the repair time associated with the claim. Alternating renewal process is used to model the operating and repair times. The warranty costs over the warranty period under renewing free replacement policy are evaluated. Also, the expected warranty expenses over the life cycle of the product are studied. Numerical examples illustrate the ideas.

AN OPPORTUNITY-BASED AGE REPLACEMENT POLICY CONSIDERING WARRANTY

1999 ◽  
Vol 06 (03) ◽  
pp. 229-236 ◽  
Author(s):  
BERMAWI P. ISKANDAR ◽  
HIROAKI SANDOH
Keyword(s):  
Time Distribution ◽  
Failure Time ◽  
Sufficient Conditions ◽  
Replacement Policy ◽  
Minimal Repair ◽  
Failure Time Distribution ◽  
Warranty Period ◽  
Preventive Replacement ◽  
Long Run ◽  
Age Replacement

This study discusses an opportunity-based age replacement policy for a system which has a warranty period (0, S]. When the system fails at its age x≤S, a minimal repair is performed. If an opportunity occurs to the system at its age x for S<x<T, we take the opportunity with probability p to preventively replace the system, while we conduct a corrective replacement when it fails on (S, T). Finally if its age reaches T, we execute a preventive replacement. Under this replacement policy, the design variable is T. For the case where opportunities occur according to a Poisson process, a long-run average cost of this policy is formulated under a general failure time distribution. It is, then, shown that one of the sufficient conditions where a unique finite optimal T* exists is that the failure time distribution is IFR (Increasing Failure Rate). Numerical examples are also presented for the Weibull failure time distribution.

scholarly journals Warranty cost analysis with an alternating geometric process

2019 ◽  
Vol 233 (4) ◽  
pp. 698-715 ◽  
Author(s):  
Richard Arnold ◽  
Stefanka Chukova ◽  
Yu Hayakawa ◽  
Sarah Marshall
Keyword(s):  
Life Cycle ◽  
Real Data ◽  
Repair Time ◽  
Repair Cost ◽  
Geometric Process ◽  
Warranty Period ◽  
Warranty Cost ◽  
Warranty Costs ◽  
Warranty Claims ◽  
Operational Time

In this study, we model the warranty claims process and evaluate the warranty servicing costs under non-renewing, renewing and restricted renewing free repair warranties. We assume that the repair time for rectifying the claims is non-zero and the repair cost is a function of the length of the repair time. To accommodate the ageing of the product and repair equipment, we use a decreasing geometric process to model the consecutive operational times and an increasing geometric process to model the consecutive repair times. We identify and study the alternating geometric process, which is an alternating process with cycles consisting of the item’s operational time followed by the corresponding repair time. We derive new results for the alternating geometric process in a finite horizon and use them to evaluate the warranty costs over the warranty period and over the life cycle of the product under a non-renewing free repair warranty, a renewing free repair warranty and a restricted renewing free repair warranty. Properties of the model are demonstrated using a simulation study and by fitting the models to real data from an automotive manufacturer.

OPTIMAL DISCRETE-TIME PERIODIC REPLACEMENT POLICY FOR REPAIRABLE PRODUCTS UNDER FREE MINIMAL REPAIR WARRANTY

2012 ◽  
Vol 29 (03) ◽  
pp. 1240020
Author(s):  
FU-MIN CHANG ◽  
YU-HUNG CHIEN
Keyword(s):  
Failure Rate ◽  
Discrete Time ◽  
Replacement Policy ◽  
Cost Models ◽  
Minimal Repair ◽  
Warranty Period ◽  
Long Run ◽  
Periodic Replacement ◽  
The Cost ◽  
Time Periodic

This paper presents the effects of a free minimal repair warranty (FMRW) on the periodic replacement policy under discrete operating circumstance. For the discrete-time periodic replacement policy, a product is preventively replaced at pre-specified operation cycles N, 2N, 3N, … (N = 1, 2, …). When the product fails, a minimal repair is performed at the time of failure and the failure rate is not disturbed by each repair. From the customer's perspective, the cost models are developed for both a warranted and a nonwarranted product, and the corresponding optimal periodic replacement policies are derived such that the long-run expected cost rates are minimized. Under the assumption of the discrete time increasing failure rate (IFR), the existence and uniqueness of the optimal N* are shown, and the impacts of a FMRW on the optimal replacement policies are investigated analytically. We found that the optimal N* for a warranted product should be adjusted toward the end of the warranty period.

scholarly journals Determination of Optimal Warranty Period with Preventive Maintenance Actions for Items from Heterogeneous Populations

2020 ◽  
Vol 2020 ◽  
pp. 1-12
Author(s):  
Minjae Park
Keyword(s):  
Repair Time ◽  
Minimal Repair ◽  
Optimal Length ◽  
Repair Service ◽  
Expected Cost ◽  
Heterogeneous Populations ◽  
Cost Rate ◽  
Warranty Period ◽  
Optimal Maintenance ◽  
Warranty Length

In this study, we develop an optimal maintenance policy with replacement service and minimal repair service for items from heterogeneous populations and determine the optimal warranty length and repair time threshold. We consider the information-based repair-replacement policy model and develop the formula to evaluate the expected cost rate during the product life cycle. A general formulation is derived for the expected cost rate under a warranty policy for items of heterogeneous populations. When a replacement service and minimal repair service are provided for a failed item, then an item from a weak population has the property of an item from a weak population after service. Similarly, an item from a strong population has the property of an item from a strong population after service. We define the optimal maintenance strategies to minimize the expected cost rate with failure time and repair time for items with heterogeneous reliability characteristics. The effects of parameters of the intensity function for the failure times on the optimal length of the warranty period are studied numerically. Assuming that the product deteriorates, we illustrate the proposed approach using numerical applications and observe the impacts of relevant parameters on the optimal length of the warranty period.

Burn-in procedures for a generalized model

2001 ◽  
Vol 38 (02) ◽  
pp. 542-553 ◽  
Author(s):  
Ji Hwan Cha
Keyword(s):  
The Other ◽  
Replacement Policy ◽  
Type I ◽  
Type Ii ◽  
Failure Model ◽  
Minimal Repair ◽  
Optimal Replacement ◽  
Complete Repair ◽  
Optimal Replacement Policy ◽  
Type Of Failure

In this paper two burn-in procedures for a general failure model are considered. There are two types of failure in the general failure model. One is Type I failure (minor failure) which can be removed by a minimal repair or a complete repair and the other is Type II failure (catastrophic failure) which can be removed only by a complete repair. During a burn-in process, with burn-in Procedure I, the failed component is repaired completely regardless of the type of failure, whereas, with burn-in Procedure II, only minimal repair is done for the Type I failure and a complete repair is performed for the Type II failure. In field use, the component is replaced by a new burned-in component at the ‘field use age’ T or at the time of the first Type II failure, whichever occurs first. Under the model, the problems of determining optimal burn-in time and optimal replacement policy are considered. The two burn-in procedures are compared in cases when both the procedures are applicable.

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.

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