Warranty servicing with imperfect repair

Yun, W. Y., Murthy, D. N. P. and Jack, N. (2008) Warranty servicing with imperfect repair. International Journal of Production Economics, 111 1: 159-169. doi:10.1016/j.ijpe.2006.12.058


Author Yun, W. Y.
Murthy, D. N. P.
Jack, N.
Title Warranty servicing with imperfect repair
Journal name International Journal of Production Economics   Check publisher's open access policy
ISSN 0925-5273
Publication date 2008
Year available 2007
Sub-type Article (original research)
DOI 10.1016/j.ijpe.2006.12.058
Volume 111
Issue 1
Start page 159
End page 169
Total pages 10
Editor R. W. Grubbstroem
Place of publication Netherlands
Publisher Elsevier BV
Collection year 2008
Language eng
Subject 290309 Safety and Quality
720205 Industry costs and structure
C1
Abstract A manufacturer of a product sold with warranty incurs additional costs from the servicing of warranty claims made by customers. These costs depend on several factors such as the reliability of the product, the warranty terms, the maintenance actions of the customers, and the servicing strategy used by the manufacturer. Through effective warranty servicing strategies the manufacturer can reduce the warranty costs. In the case of repairable items, several different warranty servicing strategies involving minimal repair and replace by new have been studied. For expensive products, servicing strategies involving minimal and imperfect repairs should result in lower warranty costs than strategies studied in the past. Imperfect repair results in the reliability of a repaired item being better than it was just before failure but less than that of a new item and it is much cheaper than the cost of a new item. In this paper, we look at two new warranty servicing strategies (strategies 1 and 2) involving minimal and imperfect repairs. In both strategies, a failed item is subjected to at most one imperfect repair over the warranty period. In Strategy 1, the level of improvement in reliability under imperfect repair depends on the age of the item at which imperfect repair is carried out whereas, in Strategy 2, the level of improvement does not depend on the age. As a result, Strategy 1 involves a functional optimisation to determine the optimal improvement in reliability when an imperfect repair is carried out. In contrast, Strategy 2 involves only a parameter optimisation to determine the optimal reliability improvement. In a numerical example, we compare the two new servicing strategies with two other strategies reported in the literature.
Keyword Warranty servicing
Imperfect repair
Expected warranty servicing cost
Q-Index Code C1
Q-Index Status Confirmed Code

 
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Created: Mon, 12 May 2008, 10:57:08 EST by Gail Smith on behalf of School of Mechanical and Mining Engineering