Optimal preventive maintenance strategy for repairable items under two-dimensional warranty

Wang, Yukun; Liu, Zixian; Liu, Yiliu

doi:10.1016/j.ress.2015.06.003

Cited by 73 publications

(40 citation statements)

References 24 publications

(35 reference statements)

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“…Note that the intensity function given by (1) is widely used in the literature on 2D warranty, see Iskandar and Murthy, Huang et al and Wang et al for example. In our simplified case T ( t ) = t and U ( t ) = r ∙ t given R = r , and (1) can thus be simplified to

λ ((), t (|, r)) = θ_{0} + θ_{1} r + ((), θ_{2} + θ_{3} r) t

…”

Section: Model Developmentmentioning

confidence: 99%

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Optimal Upgrade Policy for Used Products Sold with Two‐dimensional Warranty

Wang

2016

Quality & Reliability Eng

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aIn this paper, a pre-sale upgrade model is developed for repairable used products sold with two-dimensional warranty policies. Two kinds of two-dimensional warranty regions are considered, that is, rectangular and L-shaped regions. The marginal approach is used to describe the effect of age and usage on product reliability by treating usage as a random function of age. The optimal upgrade policy is determined to minimize the dealer's total expected servicing cost which is the sum of upgrade cost and warranty servicing cost. Analytical properties of the optimal solutions are also investigated. Furthermore, a five-step approach is presented to design flexible warranty contracts with optimized upgrade policies for used products, which allow customers to choose the most suitable warranty plans among the available options offered by the dealer. Numerical example and sensitivity analysis are provided to demonstrate the proposed models. This study provides the dealers of used products with useful guidelines on designing flexible and optimized warranty contracts.

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λ ((), t (|, r)) = θ_{0} + θ_{1} r + ((), θ_{2} + θ_{3} r) t

…”

Section: Model Developmentmentioning

confidence: 99%

“…Tong et al presented a designing and pricing model of 2D extended warranty contracts with consideration of various maintenance strategies. Recently, Wang et al studied the optimal PM strategy for products during both 2D basic and extended warranty regions from the manufacturer's perspective.…”

Section: Introductionmentioning

confidence: 99%

Optimal Upgrade Policy for Used Products Sold with Two‐dimensional Warranty

Wang

2016

Quality & Reliability Eng

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“…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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“…A 2-D warranty is defined by a region in a 2-D plane with the age and usage representing the two axes. The key tenet of implementing the 2-D warranties is the heterogeneity in customer use rates [33]. For overviews of the related research, readers are referred Murthy and Blischke [23].…”

Section: Introductionmentioning

confidence: 99%

“…Some studies further optimized the warranty coverage and the maintenance setting by minimizing the servicing cost, e.g., Chen and Popova [3]; Huang et al [11] and Wang et al [33]. However, few studies on flexible 2-D warranties are found in the literature.…”

Section: Introductionmentioning

confidence: 99%

Warranty menu design for a two-dimensional warranty

Murthy

2016

Reliability Engineering & System Safety

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a b s t r a c tFierce competitions in the commercial product market have forced manufacturers to provide customerfriendly warranties with a view to achieving higher customer satisfaction and increasing the market share. This study proposes a strategy that offers customers a two-dimensional warranty menu with a number of warranty choices, called a flexible warranty policy. We investigate the design of a flexible twodimensional warranty policy that contains a number of rectangular regions. This warranty policy is obtained by dividing customers into several groups according to their use rates and providing each group a germane warranty region. Consumers choose a favorable one from the menu according to their usage behaviors. Evidently, this flexible warranty policy is attractive to users of different usage behaviors, and thus, it gives the manufacturer a good position in advertising the product. When consumers are unaware about their use rates upon purchase, we consider a fixed two-dimensional warranty policy with a staircase warranty region and show that it is equivalent to the flexible policy. Such an equivalence reveals the inherent relationship between the rectangular warranty policy, the L-shape warranty policy, the stepstair warranty policy and the iso-probability of failure warranty policy that were extensively discussed in the literature.

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Optimal preventive maintenance strategy for repairable items under two-dimensional warranty

Cited by 73 publications

References 24 publications

Optimal Upgrade Policy for Used Products Sold with Two‐dimensional Warranty

Optimal Upgrade Policy for Used Products Sold with Two‐dimensional Warranty

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

Warranty menu design for a two-dimensional warranty

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