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Optimal burn-in for repairable products sold with a two-dimensional warranty

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  • Zhi-Sheng Ye
  • D.N. Murthy
  • Min Xie
  • Loon-Ching Tang

Abstract

Warranty data analyses reveal that products sold with two-dimensional warranties may have significant infant mortalities. To deal with this problem, this article proposes and studies a new burn-in modeling approach for repairable products sold with a two-dimensional warranty. More specifically, two types of failures are characterized—i.e., normal and defect failures—and performance and cost-based burn-in models are developed under the non-renewing free-repair warranty policy. The proposed models subsume the special cases of a one-dimensional warranty, allow different failure modes to have distinct accelerated relationships, and take consumer usage heterogeneity into consideration. Under mild assumptions, it is established that the optimal burn-in usage rate should be as high as possible, provided that no extraneous failure modes are introduced. Furthermore, It is shown that the optimal burn-in duration determined from the performance-based model is not shorter than that from the cost-based model. Numerical examples are used to demonstrate the benefits of burn-in. In addition, some practical implications from a sensitivity analysis are elaborated.

Suggested Citation

  • Zhi-Sheng Ye & D.N. Murthy & Min Xie & Loon-Ching Tang, 2013. "Optimal burn-in for repairable products sold with a two-dimensional warranty," IISE Transactions, Taylor & Francis Journals, vol. 45(2), pages 164-176.
    • Handle: RePEc:taf:uiiexx:v:45:y:2013:i:2:p:164-176
    DOI: 10.1080/0740817X.2012.677573
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    Cited by:

    1. Chun Su & Xiaolin Wang, 2016. "Modeling flexible two-dimensional warranty contracts for used products considering reliability improvement actions," Journal of Risk and Reliability, , vol. 230(2), pages 237-247, April.
    2. Tao Na & Zhang Sheng, 2015. "Designing the Optimal Extended Warranty Price with Indirect Network Effect," Journal of Systems Science and Information, De Gruyter, vol. 3(1), pages 59-67, February.
    3. 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).
    4. Huang, Yeu-Shiang & Huang, Chao-Da & Ho, Jyh-Wen, 2017. "A customized two-dimensional extended warranty with preventive maintenance," European Journal of Operational Research, Elsevier, vol. 257(3), pages 971-978.
    5. Lijun Shang & Baoliang Liu & Kaiye Gao & Li Yang, 2023. "Random Warranty and Replacement Models Customizing from the Perspective of Heterogeneity," Mathematics, MDPI, vol. 11(15), pages 1-22, July.
    6. 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).
    7. Chehade, Abdallah & Savargaonkar, Mayuresh & Krivtsov, Vasiliy, 2022. "Conditional Gaussian mixture model for warranty claims forecasting," Reliability Engineering and System Safety, Elsevier, vol. 218(PB).
    8. Mabel C. Chou & Chee-Khian Sim & Xue-Ming Yuan, 2020. "Policies for inventory models with product returns forecast from past demands and past sales," Annals of Operations Research, Springer, vol. 288(1), pages 137-180, May.
    9. Xiaolin Wang & Wei Xie, 2018. "Two-dimensional warranty: A literature review," Journal of Risk and Reliability, , vol. 232(3), pages 284-307, June.
    10. Wei Xie, 2017. "Optimal pricing and two-dimensional warranty policies for a new product," International Journal of Production Research, Taylor & Francis Journals, vol. 55(22), pages 6857-6870, November.
    11. 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.
    12. Liu, Bin & Wu, Jun & Xie, Min, 2015. "Cost analysis for multi-component system with failure interaction under renewing free-replacement warranty," European Journal of Operational Research, Elsevier, vol. 243(3), pages 874-882.
    13. Wei Xie & Lijuan Shen & Yuanguang Zhong, 2017. "Two-dimensional aggregate warranty demand forecasting under sales uncertainty," IISE Transactions, Taylor & Francis Journals, vol. 49(5), pages 553-565, May.

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