TY - JOUR
T1 - A two-stage preventive maintenance optimization model incorporating two-dimensional extended warranty
AU - Su, Chun
AU - Wang, Xiaolin
N1 - Funding Information:
The authors are grateful to the associated editor and the anonymous referees for their constructive comments with which the presentation of this paper was improved. This work was supported by the Fundamental Research Funds for the Central Universities and the Graduate Training Innovative Projects Foundation of Jiangsu Province (No. SJLX_0049 ), and the Jiangsu Provincial Six Talent Peaks Project (No. 2013ZBZZ-046 ).
Publisher Copyright:
© 2016 Elsevier Ltd
Copyright:
Copyright 2017 Elsevier B.V., All rights reserved.
PY - 2016/11/1
Y1 - 2016/11/1
N2 - In practice, customers can decide whether to buy an extended warranty or not, at the time of item sale or at the end of the basic warranty. In this paper, by taking into account the moments of customers purchasing two-dimensional extended warranty, the optimization of imperfect preventive maintenance for repairable items is investigated from the manufacturer's perspective. A two-dimensional preventive maintenance strategy is proposed, under which the item is preventively maintained according to a specified age interval or usage interval, whichever occurs first. It is highlighted that when the extended warranty is purchased upon the expiration of the basic warranty, the manufacturer faces a two-stage preventive maintenance optimization problem. Moreover, in the second stage, the possibility of reducing the servicing cost over the extended warranty period is explored by classifying customers on the basis of their usage rates and then providing them with customized preventive maintenance programs. Numerical examples show that offering customized preventive maintenance programs can reduce the manufacturer's warranty cost, while a larger saving in warranty cost comes from encouraging customers to buy the extended warranty at the time of item sale.
AB - In practice, customers can decide whether to buy an extended warranty or not, at the time of item sale or at the end of the basic warranty. In this paper, by taking into account the moments of customers purchasing two-dimensional extended warranty, the optimization of imperfect preventive maintenance for repairable items is investigated from the manufacturer's perspective. A two-dimensional preventive maintenance strategy is proposed, under which the item is preventively maintained according to a specified age interval or usage interval, whichever occurs first. It is highlighted that when the extended warranty is purchased upon the expiration of the basic warranty, the manufacturer faces a two-stage preventive maintenance optimization problem. Moreover, in the second stage, the possibility of reducing the servicing cost over the extended warranty period is explored by classifying customers on the basis of their usage rates and then providing them with customized preventive maintenance programs. Numerical examples show that offering customized preventive maintenance programs can reduce the manufacturer's warranty cost, while a larger saving in warranty cost comes from encouraging customers to buy the extended warranty at the time of item sale.
KW - Customized preventive maintenance
KW - Two-dimensional extended warranty
KW - Two-dimensional preventive maintenance
KW - Two-stage optimization
UR - http://www.scopus.com/inward/record.url?scp=84979520659&partnerID=8YFLogxK
U2 - 10.1016/j.ress.2016.07.004
DO - 10.1016/j.ress.2016.07.004
M3 - Journal article
AN - SCOPUS:84979520659
SN - 0951-8320
VL - 155
SP - 169
EP - 178
JO - Reliability Engineering and System Safety
JF - Reliability Engineering and System Safety
ER -