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Optimization of cost and downtime for replacement model following the expiration of warranty

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  • Jung, Ki Mun
  • Han, Sung Sil
  • Park, Dong Ho

Abstract

This paper deals with the optimal replacement policies following the expiration of warranty: renewing warranty and non-renewing warranty. If the system fails during its warranty period, it is replaced with a new one and if the system fails after the warranty period is expired, then it is minimally repaired at each failure. The criterion used to determine the optimality of the replacement period is the overall value function, which is established based on the expected downtime and the expected cost rate combined. Firstly, we develop the expected downtime per unit time and the expected cost rate per unit time for our replacement model when the cost and downtime structures of maintaining the system are given. The overall value function suggested by Jiang and Ji [Age replacement policy: a multi-attribute value model. Reliab Eng Syst Saf 2002;76:311–8] is then utilized to determine the optimal maintenance period based on the expected downtime and the expected cost rate. Numerical examples are presented for illustrative purpose.

Suggested Citation

  • Jung, Ki Mun & Han, Sung Sil & Park, Dong Ho, 2008. "Optimization of cost and downtime for replacement model following the expiration of warranty," Reliability Engineering and System Safety, Elsevier, vol. 93(7), pages 995-1003.
    • Handle: RePEc:eee:reensy:v:93:y:2008:i:7:p:995-1003
    DOI: 10.1016/j.ress.2007.05.005
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    References listed on IDEAS

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    1. Blischke, W. R. & Murthy, D. N. P., 1992. "Product warranty management -- I: A taxonomy for warranty policies," European Journal of Operational Research, Elsevier, vol. 62(2), pages 127-148, October.
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    Cited by:

    1. Hui Chen & Jie Chen & Yangyang Lai & Xiaoqi Yu & Lijun Shang & Rui Peng & Baoliang Liu, 2024. "Discrete Random Renewable Replacements after the Expiration of Collaborative Preventive Maintenance Warranty," Mathematics, MDPI, vol. 12(18), pages 1-21, September.
    2. Shafiee, Mahmood & Chukova, Stefanka, 2013. "Maintenance models in warranty: A literature review," European Journal of Operational Research, Elsevier, vol. 229(3), pages 561-572.
    3. Rui Zheng & Chun Su & Yuqiao Zheng, 2020. "Two-stage flexible warranty decision-making considering downtime loss," Journal of Risk and Reliability, , vol. 234(3), pages 527-535, June.
    4. 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.
    5. 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).
    6. Yukun Wang & Yiliu Liu & Aibo Zhang, 2019. "Preventive maintenance optimization for repairable products considering two-dimensional warranty and customer satisfaction," Journal of Risk and Reliability, , vol. 233(4), pages 553-566, August.
    7. Park, Minjae & Mun Jung, Ki & Park, Dong Ho, 2013. "Optimal post-warranty maintenance policy with repair time threshold for minimal repair," Reliability Engineering and System Safety, Elsevier, vol. 111(C), pages 147-153.

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