Optimal age-replacement policy for nonrepairable products under renewing free-replacement warranty

Author

Yeh, Ruey Huei ; Chen, Gaung-Cheng ; Chen, Ming-Yuh

Author_Institution

Dept. of Ind. Manage., Nat. Taiwan Univ. of Sci. & Technol., Taipei, Taiwan

Volume

54

Issue

1

fYear

2005

fDate

3/1/2005 12:00:00 AM

Firstpage

92

Lastpage

97

Abstract

This paper investigates the effects of a renewing free-replacement warranty on the age replacement policy for a nonrepairable product. For both warranted, and nonwarranted products, cost models are developed, and the corresponding optimal replacement ages are derived such that the long-run expected cost rate is minimized. Furthermore, we show that the optimal replacement age for a warranted product is closer to the end of the warranty period than for a nonwarranted product. Finally, numerical examples are given to evaluate the impact of a product warranty on the optimal replacement age.

Keywords

cost reduction; failure analysis; maintenance engineering; cost models; long-run expected cost rate; nonrepairable product; nonwarranted products; optimal age-replacement policy; renewing free-replacement warranty; warranted product; Automation; Cost function; Councils; Failure analysis; Mathematical model; Technology management; US Department of Commerce; Warranties; Age replacement policy; long-run expected cost rate; renewing free-replacement warranty;

fLanguage

English

Journal_Title

Reliability, IEEE Transactions on

Publisher

ieee

ISSN

0018-9529

Type

jour

DOI

10.1109/TR.2004.841723

Filename

1402686