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On a general periodic preventive maintenance policy incorporating warranty contracts and system ageing losses

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  • Wu, Jun
  • Xie, Min
  • Adam Ng, Tsan Sheng

Abstract

In this paper, a general periodic preventive maintenance (PM) policy for a repairable revenue-generating system is developed and studied. We define 'ageing losses' as the difference in revenues generated by an ideal system (no ageing) and a real system that ages over the same period of consideration. It is assumed that preventive maintenance slows the system deterioration process and therefore reduces ageing losses. The proposed model is general in the sense that (1) both the warranty contracts and system ageing losses are incorporated in the maintenance cost modeling and (2) the implementation of PM actions does not have to be strictly periodic. A cost model is developed for the buyer under two decision variables--the calendar time of the first PM and the degree of each PM. Numerical examples are then presented to show the effectiveness of the proposed model. Sensitivity analyses are further conducted to investigate the impact of model parameters on optimal solutions.

Suggested Citation

  • Wu, Jun & Xie, Min & Adam Ng, Tsan Sheng, 2011. "On a general periodic preventive maintenance policy incorporating warranty contracts and system ageing losses," International Journal of Production Economics, Elsevier, vol. 129(1), pages 102-110, January.
    • Handle: RePEc:eee:proeco:v:129:y:2011:i:1:p:102-110
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    References listed on IDEAS

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    Cited by:

    1. Liu, Gia-Shie, 2011. "Dynamic group instantaneous replacement policies for unreliable Markovian service systems," International Journal of Production Economics, Elsevier, vol. 130(2), pages 203-217, April.
    2. Ali Salmasnia & Amin Yazdekhasti, 2017. "A bi-objective model to optimize periodic preventive maintenance strategy during warranty period by considering customer satisfaction," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(4), pages 770-781, December.
    3. Huang, Yeu-Shiang & Huang, Chao-Da & Ho, Jyh-Wen, 2017. "A customized two-dimensional extended warranty with preventive maintenance," European Journal of Operational Research, Elsevier, vol. 257(3), pages 971-978.
    4. Shafiee, Mahmood & Chukova, Stefanka, 2013. "Maintenance models in warranty: A literature review," European Journal of Operational Research, Elsevier, vol. 229(3), pages 561-572.
    5. Ben Mabrouk, A. & Chelbi, A. & Radhoui, M., 2016. "Optimal imperfect maintenance strategy for leased equipment," International Journal of Production Economics, Elsevier, vol. 178(C), pages 57-64.
    6. Hamidi, Maryam & Liao, Haitao & Szidarovszky, Ferenc, 2016. "Non-cooperative and cooperative game-theoretic models for usage-based lease contracts," European Journal of Operational Research, Elsevier, vol. 255(1), pages 163-174.
    7. Ruiz-Castro, Juan Eloy, 2016. "Markov counting and reward processes for analysing the performance of a complex system subject to random inspections," Reliability Engineering and System Safety, Elsevier, vol. 145(C), pages 155-168.
    8. Peng, Shizhe & Jiang, Wei & Wei, Lai & Wang, Xiao-Lin, 2022. "A new cost-sharing preventive maintenance program under two-dimensional warranty," International Journal of Production Economics, Elsevier, vol. 254(C).
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    10. Dai, Anshu & Wei, Guanzhou & Wang, Dongfan & He, Zhen & He, Shuguang, 2021. "The opportunity study of PM strategy for second-hand products sold with a two-dimensional warranty," Reliability Engineering and System Safety, Elsevier, vol. 214(C).

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