IDEAS home Printed from https://ideas.repec.org/a/hin/jnddns/5564740.html
   My bibliography  Save this article

Optimization of Extended Warranty Cost for Multi-Component Products with Failure Interaction

Author

Listed:
  • Rongcai Wang
  • Enzhi Dong
  • Zhonghua Cheng
  • Liqing Rong
  • Qian Wang
  • Stefan Balint

Abstract

In practice, the assumption of failure independence between components is seldom valid, especially for those complex systems with complicated failure mechanism. Users can decide whether to purchase extended warranty (EW) at the end of basic warranty, and there are many factors that influence this decision, such as product reliability and EW price. In order to solve the problem of EW pricing for multi-component systems with failure interaction reasonably, considering the failure interaction characteristics between components of the multi-component systems, under the condition of type II failure interaction, this paper constructed a dependent failure rate model and developed a EW cost model of two-component systems. Thus, after optimizing the preventive maintenance (PM) strategy, this paper obtained the optimal PM interval when EW cost is the lowest, which is a win-win strategy to reduce the EW price for manufacturers and users under the premise of ensuring the manufacturer's profit demand. Finally, the validity of the model was verified by a numerical example and sensitivity analysis for important parameters was presented.

Suggested Citation

  • Rongcai Wang & Enzhi Dong & Zhonghua Cheng & Liqing Rong & Qian Wang & Stefan Balint, 2021. "Optimization of Extended Warranty Cost for Multi-Component Products with Failure Interaction," Discrete Dynamics in Nature and Society, Hindawi, vol. 2021, pages 1-12, March.
    • Handle: RePEc:hin:jnddns:5564740
    DOI: 10.1155/2021/5564740
    as

    Download full text from publisher

    File URL: http://downloads.hindawi.com/journals/ddns/2021/5564740.pdf
    Download Restriction: no
    File URL: http://downloads.hindawi.com/journals/ddns/2021/5564740.xml
    Download Restriction: no
    File URL: https://libkey.io/10.1155/2021/5564740?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hin:jnddns:5564740. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mohamed Abdelhakeem (email available below). General contact details of provider: https://www.hindawi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.