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A study of quality management strategy for reused products

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  • Lo, Hui-Chiung
  • Yu, Rouh-Yun

Abstract

To ensure the sustainability, industries have to move forward to product recovery strategies. Reuse is one of the most efficient strategies as it preserves natural resources while maintaining the functional properties of the product. To alleviate the concerns over the quality at the end of first life, laws are enacted to protect the consumers through mandatory warranty requirements. Offering warranty results in additional costs, this cost might be reduced through upgrade that improves the reliability of the item. Considering the age at the end of first life as stochastic, this paper proposes a profit model, relevant costs like upgrade and the minimal repair during the warranty period are included. Optimal upgrade level and warranty length are jointly derived so that the expected profit per used item for the producer can be maximized. Algorithm to search for the optimal solution is developed for a special case. Numerical examples are utilized to demonstrate the feasibility of the proposed approach and the sensitivity analyses regarding the important parameters that might impact the profit.

Suggested Citation

  • Lo, Hui-Chiung & Yu, Rouh-Yun, 2013. "A study of quality management strategy for reused products," Reliability Engineering and System Safety, Elsevier, vol. 119(C), pages 172-177.
    • Handle: RePEc:eee:reensy:v:119:y:2013:i:c:p:172-177
    DOI: 10.1016/j.ress.2013.05.009
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    Cited by:

    1. Sidibe, I.B. & Khatab, A. & Diallo, C. & Kassambara, A., 2017. "Preventive maintenance optimization for a stochastically degrading system with a random initial age," Reliability Engineering and System Safety, Elsevier, vol. 159(C), pages 255-263.
    2. Chun Su & Xiaolin Wang, 2016. "Modeling flexible two-dimensional warranty contracts for used products considering reliability improvement actions," Journal of Risk and Reliability, , vol. 230(2), pages 237-247, April.
    3. Santos, Augusto César de Jesus & Cavalcante, Cristiano Alexandre Virgínio & Wu, Shaomin, 2023. "Maintenance policies and models: A bibliometric and literature review of strategies for reuse and remanufacturing," Reliability Engineering and System Safety, Elsevier, vol. 231(C).
    4. Santos, Augusto César de Jesus & Cavalcante, Cristiano Alexandre Virginio & Ren, Junru & Wu, Shaomin, 2023. "A novel delay time modelling method for incorporating reuse actions in three-state single-component systems," Reliability Engineering and System Safety, Elsevier, vol. 234(C).
    5. Guan, Zhimin & Yu, Tianyang & Dong, Jingyang & Zhang, Jun, 2024. "Impact of consumers’ anticipated regret on brand owners’ blockchain adoption in the presence of a secondhand market," International Journal of Production Economics, Elsevier, vol. 271(C).
    6. Wang, Yukun & Liu, Yiliu & Liu, Zixian & Li, Xiaopeng, 2017. "On reliability improvement program for second-hand products sold with a two-dimensional warranty," Reliability Engineering and System Safety, Elsevier, vol. 167(C), pages 452-463.
    7. Hashemi, M. & Asadi, M. & Tavangar, M., 2022. "Optimal maintenance strategies for coherent systems: A warranty dependent approach," Reliability Engineering and System Safety, Elsevier, vol. 217(C).
    8. Meng, Kai & Lou, Peihuang & Peng, Xianghui & Prybutok, Victor, 2017. "Multi-objective optimization decision-making of quality dependent product recovery for sustainability," International Journal of Production Economics, Elsevier, vol. 188(C), pages 72-85.
    9. Mohamed Noomane Darghouth & Anis Chelbi & Daoud Ait-kadi, 2017. "Investigating reliability improvement of second-hand production equipment considering warranty and preventive maintenance strategies," International Journal of Production Research, Taylor & Francis Journals, vol. 55(16), pages 4643-4661, August.
    10. Liu, Bin & Wu, Jun & Xie, Min, 2015. "Cost analysis for multi-component system with failure interaction under renewing free-replacement warranty," European Journal of Operational Research, Elsevier, vol. 243(3), pages 874-882.
    11. 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).
    12. Chun Su & Xiaolin Wang, 2014. "Optimizing upgrade level and preventive maintenance policy for second-hand products sold with warranty," Journal of Risk and Reliability, , vol. 228(5), pages 518-528, October.
    13. Kai Meng & Peihuang Lou & Xianghui Peng & Victor Prybutok, 2017. "Quality-driven recovery decisions for used components in reverse logistics," International Journal of Production Research, Taylor & Francis Journals, vol. 55(16), pages 4712-4728, August.

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