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On optimal preventive-maintenance policy for generalized Polya process repairable products under free-repair warranty

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  • Chien, Yu-Hung
  • Zhang, Zhe George
  • Yin, Xiaoling

Abstract

This paper focuses on analyzing the cost behavior of a free-repair warranty (FRW) policy with a preventive maintenance (PM) schedule for a complex product. We utilize a generalized Polya process to model the more general failure and repairs during the FRW coverage period. The expected cost function of the FRW with PMs is derived. We firstly prove that a unique optimal PM schedule exists for a FRW with a finite number of PMs, and then propose a search algorithm for computing the optimal number of PMs and their implementation times for a given FRW coverage period. A certain amount of numerical analysis is conducted to gain further insights into the FRW with PMs. Owing to the significant cost-saving advantages of scheduling PMs for the FRW, our study offers an important analytical tool for marketing managers in the design of more competitive and cost-effective warranty policies for complex and durable products.

Suggested Citation

  • Chien, Yu-Hung & Zhang, Zhe George & Yin, Xiaoling, 2019. "On optimal preventive-maintenance policy for generalized Polya process repairable products under free-repair warranty," European Journal of Operational Research, Elsevier, vol. 279(1), pages 68-78.
    • Handle: RePEc:eee:ejores:v:279:y:2019:i:1:p:68-78
    DOI: 10.1016/j.ejor.2019.03.042
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    Cited by:

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    2. Dui, Hongyan & Tian, Tianzi & Wu, Shaomin & Xie, Min, 2023. "A cost-informed component maintenance index and its applications," Reliability Engineering and System Safety, Elsevier, vol. 230(C).
    3. Cha, Ji Hwan & Finkelstein, Maxim & Levitin, Gregory, 2021. "Optimal warranty policy with inspection for heterogeneous, stochastically degrading items," European Journal of Operational Research, Elsevier, vol. 289(3), pages 1142-1152.
    4. Shang, Lijun & Liu, Baoliang & Qiu, Qingan & Yang, Li, 2023. "Three-dimensional warranty and post-warranty maintenance of products with monitored mission cycles," Reliability Engineering and System Safety, Elsevier, vol. 239(C).
    5. 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).
    6. Liu, Peng & Wang, Guanjun, 2022. "Minimal repair models with non-negligible repair time," Reliability Engineering and System Safety, Elsevier, vol. 217(C).
    7. Huang, Yeu-Shiang & Fang, Chih-Chiang & Lu, Chang-Ming & (Bill) Tseng, Tzu-Liang, 2022. "Optimal Warranty Policy for Consumer Electronics with Dependent Competing Failure Processes," Reliability Engineering and System Safety, Elsevier, vol. 222(C).
    8. 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).
    9. Afsahi, Mohsen & Shafiee, Mahmood, 2020. "A stochastic simulation-optimization model for base-warranty and extended-warranty decision-making of under- and out-of-warranty products," Reliability Engineering and System Safety, Elsevier, vol. 197(C).
    10. 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.
    11. Zhao, Xiujie & Liu, Bin & Xu, Jianyu & Wang, Xiao-Lin, 2023. "Imperfect maintenance policies for warranted products under stochastic performance degradation," European Journal of Operational Research, Elsevier, vol. 308(1), pages 150-165.

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