Flexible decision models for a two-dimensional warranty policy with periodic preventive maintenance

Wang, Jinting; Zhuang, Zhitao; Peng, Hao

doi:10.1016/j.ress.2017.01.012

Cited by 50 publications

(21 citation statements)

References 42 publications

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“…They also applied game theory to develop decision models in order to explore interactions and competition between component suppliers and manufacturers. Wang et al (2017 [32]) surveyed cooperative and non-cooperative interactions between manufacturers and consumers based on Base Warranty and Extended Warranty. During the Base Warranty period, Wang et al proposed a new upgrade model in which the cost of Preventive Maintenance is shared by both parties.…”

Section: Warranty Operational Decisionsmentioning

confidence: 99%

The Impact of Warranty Efficiency of Remanufactured Products on Production Decisions and Green Growth Performance in Closed-Loop Supply Chain: Perspective of Consumer Behavior

Zhu

2019

Sustainability

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Consumers cannot fully assess the quality of remanufactured products prior to purchase. To reduce consumer risk, closed-loop supply chains adopt a warranty strategy to enhance perceived value among customers and stimulate green growth. Based on Stackelberg game theory and considering consumers’ low-carbon and remanufactured product preferences, this paper aims to explore the decision-making efficiency of closed-loop supply chains with warranty services. The results of the study show that consumers’ confidence in purchasing remanufactured products has increased the demand for new products and remanufactured products, in turn also increasing the interest of the member companies of the supply chain, and stimulating the realization of the potential value of remanufacturing, which is conducive to green growth. When a remanufactured product warranty period meets certain conditions, the member companies of the supply chain can obtain optimal profit. The optimal warranty entity selection of a closed-loop supply chain with a warranty service depends on the warranty efficiency of each entity, thus making it necessary to examine the products of each warranty party.

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Section: Warranty Operational Decisionsmentioning

confidence: 99%

The Impact of Warranty Efficiency of Remanufactured Products on Production Decisions and Green Growth Performance in Closed-Loop Supply Chain: Perspective of Consumer Behavior

Zhu

2019

Sustainability

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“…Arabi et al [25] determined the best warranty period from the perspective of producers and consumers to minimize the total cost of use and increase service life. Wang et al [26] investigated the cooperative and non-cooperative interactions between manufacturers and consumers based on base warranty and extended warranty. Using the basic warranty period, they proposed a new upgrade model where the cost of preventive maintenance is shared by both parties.…”

Section: Warranty Operational Decisionsmentioning

confidence: 99%

Warranty Period Decision and Coordination in Closed-Loop Supply Chains Considering Remanufacturing and Consumer Behavior

Zhu

2019

Sustainability

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The closed-loop supply chain management model is an effective way to promote sustainable economic development and environmental protection. Increasing the sales volume of remanufactured products to stimulate green growth is a key issue in the development of closed-loop supply chains. By designing an effective warranty strategy, customer’s perceived value can be enhanced and market demand can be stimulated. This study cuts through the warranty period of closed-loop supply chain products. Based on the perspective of consumer behavior, game theory is used to construct the optimal decision-making model for closed-loop supply chains. The optimal warranty decision making for new products and remanufactured products under centralized and decentralized decision-making models is discussed. Further, the impact of the closed-loop supply chain system with warranty services and the design of contract coordination is also shown. We show that consumer preference has a positive impact on the sales of remanufactured products and the profits of enterprises; with the extension of the new product and remanufacturing warranty period, the profit of the supply chain system first increases and then decreases, and the value is maximized at the extreme point in the manufacturer-led decision-making model. Furthermore, the leader gains higher profits with bargaining power, but the profit of the supply chain system under decentralized decision model is less than that of the centralized decision model, reflecting the double marginalization effect. The revenue sharing contract and the two-charge contract designed in this study coordinate the closed-loop supply chain system with warranty services, so that the member companies in the supply chain can achieve Pareto improvement.

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“…The warranty benefits to the buyer are protective, since within the warranty period if the product fails the manufacturer agrees to repair or replace the failed product at no cost, such that the buyer only suffers the cost due to system interference caused by repair activity. Once this period expires, the buyer will be charged for spare parts, maintenance, and other services to keep the system's availability (Wang et al 2017). The system considered is sold under a one-dimension…”

Section: Benefit Of Warrantymentioning

confidence: 99%

“…Many products are sold with warranty in which the manufacturers agree to give free maintenance services or compensation to the buyer when the product fails during the warranty period (Shafiee and Chukova 2013). It followed that most research on warranty 1 3 and maintenance optimization studied is done from the manufacturer's point of view (Jack and Dagpunar 1994;Jack et al 2009;Wang et al 2015), and some works consider the interests of the manufacturer and the buyer (Wang et al 2017;Iskandar et al 2016). From the buyer's point of view, especially those who buy assets and use them to support their businesses, after-sale services (such as warranty, spare parts availability, and repair and maintenance) are important factors to attain their business performances.…”

Section: Introductionmentioning

confidence: 99%

Optimal overhaul–replacement policy for a multi-degraded repairable system sold with warranty

2019

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In this research, we study an optimal overhaul-replacement policy of a multi-degraded repairable system sold with a free replacement warranty. In the proposed replacement policy, a maintenance action and failure are dependent on a system degradation level and the system age, and hence the replacement model will provide more effective maintenance decisions. Failure of the system is modeled using a rate of occurrence of failure for the system, which is as a function of a degradation level of the system and its age. We develop the optimal replacement policy for a multi-degraded repairable system from the buyer's point of view, who plans to use the system for a horizon planning T. The buyer conducts a periodic evaluation and selects an appropriate maintenance option based on the revealed system condition together with the system operational age. At each evaluation point, three alternative decisions are available, i.e., keep running the system, overhaul, or replace it with a new one. We formulate the sequential decision (keep, overhaul, or replace) problem as a dynamic programming model and obtain an optimal policy that minimizes total cost over T. Numerical examples are presented using several hypothetical data sets to illustrate the structure of optimal solution and its sensitivity against the change in parameter values. The main contribution of the paper is to offer a decision tool that will help in deciding the overhaul-replacement action based on the degradation level and the operational age of the system.

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Flexible decision models for a two-dimensional warranty policy with periodic preventive maintenance

Cited by 50 publications

References 42 publications

The Impact of Warranty Efficiency of Remanufactured Products on Production Decisions and Green Growth Performance in Closed-Loop Supply Chain: Perspective of Consumer Behavior

The Impact of Warranty Efficiency of Remanufactured Products on Production Decisions and Green Growth Performance in Closed-Loop Supply Chain: Perspective of Consumer Behavior

Warranty Period Decision and Coordination in Closed-Loop Supply Chains Considering Remanufacturing and Consumer Behavior

Optimal overhaul–replacement policy for a multi-degraded repairable system sold with warranty

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