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Optimal two-dimensional warranty repair strategy

Author

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  • S Chukova
  • Y Hayakawa
  • M. R. Johnston

Abstract

For repairable products, the warrantor has options in choosing the type of repair performed to an item that fails within the warranty period. The focus is on a particular warranty repair strategy, related to the degree of the warranty repair, under a non-renewing two-dimensional warranty policy that is free of charge to the consumer. A rectangular warranty region, as in the automotive industry, is considered and partitioned into disjoint subregions. Each of these subregions has a preassigned degree of repair for a faulty item. First, for a partition of size n , an expression is derived for the associated expected warranty servicing cost per item sold. Second, using an example, for a given discretization of the warranty period, the way in which the number of subregions and their shape can be determined, so that the expected warranty servicing cost per item sold is minimum, is demonstrated.

Suggested Citation

  • S Chukova & Y Hayakawa & M. R. Johnston, 2007. "Optimal two-dimensional warranty repair strategy," Journal of Risk and Reliability, , vol. 221(4), pages 265-273, December.
    • Handle: RePEc:sae:risrel:v:221:y:2007:i:4:p:265-273
    DOI: 10.1243/1748006XJRR53
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    References listed on IDEAS

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    1. Murthy, D. N. P. & Djamaludin, I., 2002. "New product warranty: A literature review," International Journal of Production Economics, Elsevier, vol. 79(3), pages 231-260, October.
    2. Jack, Nat & Van der Duyn Schouten, Frank, 2000. "Optimal repair-replace strategies for a warranted product," International Journal of Production Economics, Elsevier, vol. 67(1), pages 95-100, August.
    3. Chukova, S. & Arnold, R. & Wang, Dong Q., 2004. "Warranty analysis: An approach to modeling imperfect repairs," International Journal of Production Economics, Elsevier, vol. 89(1), pages 57-68, May.
    4. S. Chukova & Y. Hayakawa & R. Arnold, 2007. "Warranty Analysis: Estimation Of The Degree Of Imperfect Repair Via A Bayesian Approach," World Scientific Book Chapters, in: Tadashi Dohi & Shunji Osaki & Katsushige Sawaki (ed.), Recent Advances In Stochastic Operations Research, chapter 1, pages 3-21, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Minjae Park & Ki Mun Jung & Dong Ho Park, 2016. "Optimal warranty policies considering repair service and replacement service under the manufacturer’s perspective," Annals of Operations Research, Springer, vol. 244(1), pages 117-132, September.

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