IDEAS home Printed from https://ideas.repec.org/a/eee/reensy/v93y2008i7p995-1003.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0951832007001585
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ress.2007.05.005?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shafiee, Mahmood & Chukova, Stefanka, 2013. "Maintenance models in warranty: A literature review," European Journal of Operational Research, Elsevier, vol. 229(3), pages 561-572.
    2. 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.
    3. 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.
    4. 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.
    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. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luo, Ming & Wu, Shaomin, 2019. "A comprehensive analysis of warranty claims and optimal policies," European Journal of Operational Research, Elsevier, vol. 276(1), pages 144-159.
    2. Liu, Yiliu & Liu, Zixian & Wang, Yukun, 2013. "Customized warranty offering for configurable products," Reliability Engineering and System Safety, Elsevier, vol. 118(C), pages 1-7.
    3. Chien, Yu-Hung, 2008. "A general age-replacement model with minimal repair under renewing free-replacement warranty," European Journal of Operational Research, Elsevier, vol. 186(3), pages 1046-1058, May.
    4. Darghouth, M.N. & Ait-kadi, D. & Chelbi, A., 2017. "Joint optimization of design, warranty and price for products sold with maintenance service contracts," Reliability Engineering and System Safety, Elsevier, vol. 165(C), pages 197-208.
    5. Sezgin Çağlar Aksezer, 2023. "Sustainability via Extended Warranty Contracts: Design for a Consumer Electronics Retailer," Sustainability, MDPI, vol. 16(1), pages 1-11, December.
    6. Cha, Ji Hwan & Finkelstein, Maxim, 2016. "On information-based warranty policy for repairable products from heterogeneous populationAuthor-Name: Lee, Hyunju," European Journal of Operational Research, Elsevier, vol. 253(1), pages 204-215.
    7. Wang, Yukun & Liu, Zixian & Liu, Yiliu, 2015. "Optimal preventive maintenance strategy for repairable items under two-dimensional warranty," Reliability Engineering and System Safety, Elsevier, vol. 142(C), pages 326-333.
    8. Mitra, Amitava, 2021. "Warranty parameters for extended two-dimensional warranties incorporating consumer preferences," European Journal of Operational Research, Elsevier, vol. 291(2), pages 525-535.
    9. Subramanian Balachander, 2001. "Warranty Signalling and Reputation," Management Science, INFORMS, vol. 47(9), pages 1282-1289, September.
    10. Kirkizoğlu, Zeynep & Karaer, Özgen, 2022. "After-sales service and warranty decisions of a durable goods manufacturer," Omega, Elsevier, vol. 113(C).
    11. Nan Zhang & Mitra Fouladirad & Anne Barros, 2018. "Warranty analysis of a two-component system with type I stochastic dependence," Journal of Risk and Reliability, , vol. 232(3), pages 274-283, June.
    12. Chien, Yu-Hung & Chen, Jih-An, 2008. "Optimal spare ordering policy under a rebate warranty," European Journal of Operational Research, Elsevier, vol. 186(2), pages 708-719, April.
    13. Izzet Sahin & Hakan Polatoglu, 1995. "Distributions of manufacturer's and user's replacement costs under warranty," Naval Research Logistics (NRL), John Wiley & Sons, vol. 42(8), pages 1233-1250, December.
    14. Wu, Shaomin, 2011. "Warranty claim analysis considering human factors," Reliability Engineering and System Safety, Elsevier, vol. 96(1), pages 131-138.
    15. 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).
    16. Liu, Peng & Wang, Guanjun, 2022. "Minimal repair models with non-negligible repair time," Reliability Engineering and System Safety, Elsevier, vol. 217(C).
    17. Liu, Peng & Wang, Guanjun, 2023. "Generalized non-renewing replacement warranty policy and an age-based post-warranty maintenance strategy," European Journal of Operational Research, Elsevier, vol. 311(2), pages 567-580.
    18. J-A Chen & Y-H Chien, 2007. "Optimal age-replacement policy for renewing warranted products," Journal of Risk and Reliability, , vol. 221(4), pages 229-237, December.
    19. W. Y. Yun & K. M. Kang, 2007. "Imperfect repair policies under two-dimensional warranty," Journal of Risk and Reliability, , vol. 221(4), pages 239-247, December.
    20. Jung, Ki Mun & Park, Minjae & Park, Dong Ho, 2010. "System maintenance cost dependent on life cycle under renewing warranty policy," Reliability Engineering and System Safety, Elsevier, vol. 95(7), pages 816-821.

    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:eee:reensy:v:93:y:2008:i:7:p:995-1003. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/reliability-engineering-and-system-safety .

    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.