Optimal warranty policies for systems with imperfect repair

Yeo, W. M. and Yuan, X.-M. (2009) Optimal warranty policies for systems with imperfect repair. European Journal of Operational Research, 199(1), pp. 187-197. (doi: 10.1016/j.ejor.2008.10.036)

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We investigate a system whose basic warranty coverage is minimal repair up to a specified warranty length. An additional service is offered whereby first failure is restored up to the consumers’ chosen level of repair. The problem is studied under two system replacement strategies: periodic maintenance before and after warranty. It turns out that our model generalizes the model of Rinsaka and Sandoh [K. Rinsaka, H. Sandoh, A stochastic model with an additional warranty contract, Computers and Mathematics with Applications 51 (2006) 179–188] and the model of Yeh et al. [R.H. Yeh, M.Y. Chen, C.Y. Lin, Optimal periodic replacement policy for repairable products under free-repair warranty, European Journal of Operational Research 176 (2007) 1678–1686]. We derive the optimal maintenance period and optimal level of repair based on the structures of the cost function and failure rate function. We show that under certain assumptions, the optimal repair level for additional service is an increasing function of the replacement time. We provide numerical studies to verify some of our results.

Item Type:Articles
Glasgow Author(s) Enlighten ID:Yeo, Dr Wee Meng
Authors: Yeo, W. M., and Yuan, X.-M.
College/School:College of Social Sciences > Adam Smith Business School > Management
Journal Name:European Journal of Operational Research
Journal Abbr.:EJOR
ISSN (Online):1872-6860
Published Online:18 November 2008

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