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A maintenance strategy for two-dimensional extended warranty based on dynamic usage rate

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  • Peng Tong
  • Xuefeng Song
  • Liu Zixian

Abstract

Maintenance strategies are commonly used for repairable products or items to reduce the warranty cost in the warranty coverage. This study proposes a new warranty maintenance strategy for two-dimensional extended warranty (EW) based on dynamic usage rate. Unlike previous studies that assumed a constant usage rate, the present study regards the consumer usage rate as dynamic in the two-dimensional EW coverage. A maintenance model is constructed to determine the optimal maintenance degree of warranty claim points and help service providers accurately estimate and reduce warranty cost. A numerical example of an automobile made in China is discussed to demonstrate the effectiveness of the proposed model. The formulated model can effectively reflect the changes in the consumer usage rate and thus helps service providers develop an accurate maintenance strategy. Meanwhile, the developed model can better reduce warranty cost compared with maintenance strategies with minimal repair.

Suggested Citation

  • Peng Tong & Xuefeng Song & Liu Zixian, 2017. "A maintenance strategy for two-dimensional extended warranty based on dynamic usage rate," International Journal of Production Research, Taylor & Francis Journals, vol. 55(19), pages 5743-5759, October.
    • Handle: RePEc:taf:tprsxx:v:55:y:2017:i:19:p:5743-5759
    DOI: 10.1080/00207543.2017.1330573
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    Cited by:

    1. Zhu, Ying & Xia, Tangbin & Chen, Zhen & Pan, Ershun & Xi, Lifeng, 2022. "Optimal maintenance service strategy for OEM entering competitive MRO market under opposite patterns," Reliability Engineering and System Safety, Elsevier, vol. 217(C).
    2. Peng, Shizhe & Jiang, Wei & Huang, Wenpo & Luo, Qinglin, 2024. "The impact of gamma usage processes on preventive maintenance policies under two-dimensional warranty," Reliability Engineering and System Safety, Elsevier, vol. 242(C).
    3. Zhao, Xiujie & He, Shuguang & Xie, Min, 2018. "Utilizing experimental degradation data for warranty cost optimization under imperfect repair," Reliability Engineering and System Safety, Elsevier, vol. 177(C), pages 108-119.
    4. Tong Peng & Liu Chunling, 2020. "Designing differential service strategy for two-dimensional warranty based on warranty claim data under consumer-side modularisation," Journal of Risk and Reliability, , vol. 234(3), pages 550-561, June.
    5. Karar, Ahmed Noaman & Labib, Ashraf & Jones, Dylan, 2023. "Post-warranty maintenance strategy selection using shape packages process," International Journal of Production Economics, Elsevier, vol. 255(C).
    6. Lijun Shang & Guojun Shang & Qingan Qiu, 2022. "A Bivariate Post-Warranty Maintenance Model for the Product under a 2D Warranty," Mathematics, MDPI, vol. 10(12), pages 1-18, June.
    7. Lin, Kunsong & Chen, Yunxia, 2021. "Analysis of two-dimensional warranty data considering global and local dependence of heterogeneous marginals," Reliability Engineering and System Safety, Elsevier, vol. 207(C).
    8. 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.
    9. Shang, Lijun & Liu, Baoliang & Qiu, Qingan & Yang, Li & Du, Yongjun, 2023. "Designing warranty and maintenance policies for products subject to random working cycles," Reliability Engineering and System Safety, Elsevier, vol. 234(C).
    10. Xiaolin Wang & Wei Xie, 2018. "Two-dimensional warranty: A literature review," Journal of Risk and Reliability, , vol. 232(3), pages 284-307, June.
    11. Ma, Junhai & Si, Fengshan & Zhang, Qin & Wang, Zongxian, 2024. "Impact of extended warranty service on product pricing in online direct retailers' competitive market," Energy Economics, Elsevier, vol. 129(C).
    12. Safaei, Fatemeh & Taghipour, Sharareh, 2022. "Optimal preventive maintenance for repairable products with three types of failures sold under a renewable hybrid FRW/PRW policy," Reliability Engineering and System Safety, Elsevier, vol. 223(C).
    13. Wang, Xiaolin & Li, Lishuai & Xie, Min, 2020. "An unpunctual preventive maintenance policy under two-dimensional warranty," European Journal of Operational Research, Elsevier, vol. 282(1), pages 304-318.
    14. 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.

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