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A new warranty policy for heterogeneous items subject to monotone degradation processes

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  • Ji Hwan Cha
  • Maxim Finkelstein

Abstract

A new renewable warranty policy is suggested that increases the probability of its success and can decrease the corresponding costs for certain ranges of parameters. It deals with heterogeneous populations of items from two subpopulations (‘weak’ and ‘strong’) and is aimed at elimination and further replacement of weak items after screening at some optimal time. This elimination is performed when degradation described by the corresponding mixed degradation process reaches some optimally predetermined level. Probabilistic and cost analyses of the model are performed and the illustrative example is presented. It is shown that the proposed warranty policy with inspection outperforms the conventional one in a probabilistic sense. Furthermore, the proposed policy becomes economically beneficial especially when the additional penalty cost caused by a sudden failure is large.

Suggested Citation

  • Ji Hwan Cha & Maxim Finkelstein, 2022. "A new warranty policy for heterogeneous items subject to monotone degradation processes," Journal of Risk and Reliability, , vol. 236(1), pages 55-65, February.
  • Handle: RePEc:sae:risrel:v:236:y:2022:i:1:p:55-65
    DOI: 10.1177/1748006X211028712
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    References listed on IDEAS

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    Cited by:

    1. Ji Hwan Cha & Maxim Finkelstein, 2023. "Acceptance reliability sampling plan for items from heterogeneous populations," Journal of Risk and Reliability, , vol. 237(6), pages 1199-1208, December.
    2. 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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