Optimal Warranty Policy for Consumer Electronics with Dependent Competing Failure Processes

Huang, Yeu‐Shiang; Fang, Chih‐Chiang; Lu, C. Joseph; Tseng, Tzu-Liang

doi:10.1016/j.ress.2022.108418

Cited by 20 publications

(5 citation statements)

References 51 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In previous research, the influences of individual random shocks on systems degradation were usually under consideration. 12,47,54 In this paper, the contribution of the cumulative random shocks to the rate of degradation is taken into account, and the issue of hard failure threshold reduction owing to degradation is addressed. The mutual dependence between two failure processes is manifested as below:…”

Section: System Reliability Modelingmentioning

confidence: 99%

“…In the case of systems with mutually DCFPs, a novel reliability model is introduced: soft failures induced by a degradation process exceeding a threshold and hard failures resulting from the arrival of deadly random shocks. In previous research, the influences of individual random shocks on systems degradation were usually under consideration 12,47,54 . In this paper, the contribution of the cumulative random shocks to the rate of degradation is taken into account, and the issue of hard failure threshold reduction owing to degradation is addressed.…”

Section: System Reliability Modelingmentioning

confidence: 99%

See 1 more Smart Citation

Optimal condition‐based maintenance policy for systems with mutually dependent competing failure

Huang

2023

Quality & Reliability Eng

View full text Add to dashboard Cite

In this paper, a novel condition‐based maintenance (CBM) policy for systems with mutually dependent competing failure processes (DCFPs) is studied. The cumulative random shocks contribute to the increased rate of degradation, meanwhile, the hard failure threshold is reduced when the amount of degradation reaches a threshold. The degradation process is simulated by a non‐stationary Gamma process and random shocks are modeled as a homogeneous Poisson process. Preventive replacement (PR) and corrective replacement (CR) are accounted for in the developed maintenance strategy. The optimal periodic inspection interval, PR threshold, and the number of cumulative random shocks can be derived by minimizing the average long‐term maintenance cost rate. In the end, a numerical case is applied to demonstrate the availability of the developed models.

show abstract

Section: System Reliability Modelingmentioning

confidence: 99%

Section: System Reliability Modelingmentioning

confidence: 99%

Optimal condition‐based maintenance policy for systems with mutually dependent competing failure

Huang

2023

Quality & Reliability Eng

View full text Add to dashboard Cite

show abstract

“…For instance, Liu et al [5] investigated the emerging trend of the complimentary extended warranty in industries, and it turned out that the free pre-registration warranty mode is better than the traditional warranty mode. Huang et al [21] proposed extended warranty programs of lump sum or monthly payment to consumers with different attitudes toward risk with consideration of multiple dependent competing failure processes. Mitra [22] investigated the issue of extended warranty for consumers that includes consumer preference after the initial coverage period has ended.…”

Section: Extended Warranty Service Strategiesmentioning

confidence: 99%

Optimal Extended Warranty Strategy: Provided by Manufacturer or E-Commerce Platform?

Sun

Zhang

et al. 2022

Sustainability

View full text Add to dashboard Cite

To meet the different needs of consumers in an E-commerce market environment, more and more enterprises have launched extended warranty services, which can reduce consumer risk and stimulate market demand in E-commerce supply chains. However, knowing who will launch the extended warranty services has become particularly important. To propose an optimal strategy of the extended warranty service provider and seller, three game models are constructed in an E-commerce supply chain consisting of a manufacturer and an E-commerce platform. In addition, this study investigated the effect of extended warranty strategy on consumers. The results show that when the extended warranty coverage and product failure probability are small, the extended warranty provided by the E-commerce platform can simulate the demand of products and extended warranty. The extended warranty provided by the manufacturer is the best choice for the manufacturer. On the other hand, the extended warranty provided by the E-commerce platform is always beneficial for the E-commerce platform and E-commerce supply chain system. The E-commerce platform should take some measures and control some parameters to make up for the losses of the manufacturer, so that the strategy of the extended warranty provided and sold by the E-commerce platform becomes the consistent choice of E-commerce supply-chain members, system, and consumers.

show abstract

“…Various strategies for a complimentary extended warranty were proposed by Liu et al [8] based on the different risk attitudes of consumers, and they concluded that risk-averse consumers might find the proposed warranty more profitable and that retailers' profits will be impacted by the degree to which consumers choose to take on risk. Huang et al [9] conducted a study on a warranted consumer electronics product that degrades over time and experiences random shocks. Their study was based on the consideration of consumers' different attitudes toward risk as it pertains to their purchases.…”

Section: Introductionmentioning

confidence: 99%

Optimal Decision for Repairable Products Sale and Warranty under Two-Dimensional Deterioration with Consideration of Production Capacity and Customers’ Heterogeneity

Chen

Fang

2023

Axioms

Self Cite

View full text Add to dashboard Cite

An effective warranty policy is not only an obligation for the manufacturer or vendor, but it also enhances the willingness of customers to purchase from them in the future. To earn more customers and increase sales, manufacturers or vendors should be inclined to prolong the service life of their products as an effort to gain more customers. Nevertheless, manufacturers or vendors will not provide a boundless warranty in order to dominate the market, since the related warranty costs will eventually exceed the profits in the end. Therefore, it is a question of weighing the advantage of extending the warranty term in order to earn the trust of new customers against the investment. In addition, since deterioration depends on both time and usage, the deterioration estimation for durable products may be incorrect when considering only one factor. For such problems, a two-dimensional deterioration model is suitable, and the failure times are drawn from a non-homogeneous Poisson process (NHPP). Moreover, customers’ heterogeneity, manufacturers’ production capacity, and preventive maintenance services are also considered in this study. A mathematical model with the corresponding solution algorithm is proposed to assist manufacturers in making systematic decisions about pricing, production, and warranty. Finally, managerial implications are also provided for refining related decision-making.

show abstract

Optimal Warranty Policy for Consumer Electronics with Dependent Competing Failure Processes

Cited by 20 publications

References 51 publications

Optimal condition‐based maintenance policy for systems with mutually dependent competing failure

Optimal condition‐based maintenance policy for systems with mutually dependent competing failure

Optimal Extended Warranty Strategy: Provided by Manufacturer or E-Commerce Platform?

Optimal Decision for Repairable Products Sale and Warranty under Two-Dimensional Deterioration with Consideration of Production Capacity and Customers’ Heterogeneity

Contact Info

Product

Resources

About