A warranty cost model with intermittent and heterogeneous usage

• Autorzy: Hong-Zhong H. , Zhi-Jie L. , Yanfeng L. , Yu L. , Liping H.
• Języki publikacji: EN

Abstrakty

EN

Estimation of warranty servicing costs during the product life cycle is of great importance to the manufacturers. Earlier research has usually assumed that the product is in continuous use and the usage intensity is the same for all buyers. This paper deals with the problem of estimating the expected warranty cost for the case where the item usage is intermittent and of heterogeneous usage intensity over the product life cycle when sales occur continuously. The failure of the item is dependent on the number of times, the duration the unit has been used and the usage intensity. Also, the product sales depend on product price and design quality. We consider repairable and nonrepairable items and obtain results for the free-replacement warranty (FRW) and Pro-rata Warranty (PRW) policy. Furthermore, the models consider the infl uences of price level, investment growth and warranty execution effects for the expected warranty costs. It also incorporates the cash fl ows of warranty reserve costs at any time intervals during the product life cycle. A numerical example is given to illustrate the application of the models.

Słowa kluczowe

EN

warranty; intermittent use; usage intensity; product sales

• Wydawca: Polskie Naukowo-Techniczne Towarzystwo Eksploatacyjne
• Czasopismo: Eksploatacja i Niezawodność
• Rocznik: 2008
• Tom: nr 4
• Strony: 9--15
• Opis fizyczny: Bibliogr. 29 poz.

Twórcy

autor

Hong-Zhong H.

autor

Zhi-Jie L.

autor

Yanfeng L.

autor

Yu L.

autor

Liping H.

• School of Mechanical, Electronic, and Industrial Engineering University of Electronic Science and Technology of China Chengdu, Sichuan, 610054, P. R. China

Bibliografia

• [1] Blischke W.R., MurthyD.N.P.: Product Warranty Handbook, Marcel Dekker, Inc, New York, 1996.
• [2] Menke W.W.: Determination of warranty reserves, Management Science 15(10) (1969) B542-549.
• [3] Amato H.N., Anderson E.E.: Determination of warranty reserves: an extension, Management Science 22(12) (1976) 1391-1394.
• [4] Patankar J.G., Worm G.H.: Prediction intervals for warranty reserves and cash flows, Management Science 27(2) (1981) 237-241.
• [5] Thomas M.U.: A prediction model for manufacturer warranty reserves, Management Science 35(12) (1989) 1515-1519.
• [6] Shau-Shiang Ja, Kulkarni V.G., Mitra A., Patankar J.G.: Warranty reserves for nonstationary sales processes, Naval Research Logistics 49 (2002) 499-513.
• [7] Dimitrov B., Chukova S., Khalil Z.: Warranty costs: an age-dependent failure/repair model, Naval Research Logistics 51 (2004) 959-976.
• [8] Shau-Shiang Ja, Kulkarni V.G., Mitra A., Patankar J.G.: A nonrenewable minimal-repair warranty policy with time-dependent costs, IEEE Transaction on Reliability 50 (4) (2001) 346-352.
• [9] Chukova S., Hayakawa Y.: Warranty cost analysis: non-renewing with repair time, Applied Stochastic Models in Business and Industry 20 (2004) 59-71.
• [10] Chukova S., Hayakawa Y.: Warranty cost analysis: renewing warranty with non-zero repair time, International Journal of Reliability, Quality and Safety Engineering 11(2) (2004) 93-112.
• [11] Mitra A., Patankar J.G.: Market share and warranty costs for renewable warranty programs, International Journal of Production Economics 50 (1997) 155-168.
• [12] Polatoglu, Sahin I.: Probability distributions of cost, revenue and profit over a warranty cycle, European Journal of Operational Research 108 (1998) 170-183.
• [13] Balcer Y., Sahin I.: Replacement cost under warranty: cost moments and time variability, Operations Research 34 (1986) 554-559.
• [14] Bai Jun, Pham Hoang: Discounted warranty cost of minimally repaired series systems, IEEE Transactions on Reliability 53(1) (2004) 37-42.
• [15] Dimitrov B., Chukovav S.: Warranty claims as marked point processes, Nonlinear Analysis 47(2001) 2145-2150.
• [16] Balachandran K.R., Maschmeyer R.A., Livingstone J.L.: Product warranty period: a Markovian approach to estimation and analysis of repair and replacement costs, The Accounting Review LV1 (1) (1981) 115-124.
• [17] Thomas M.U., . Rao S.S: Warranty economic decision models: a summary and some suggested directions for future research, Operations Research 47(6) (1997) 807-820.
• [18] Murthy D.N.P., Djamaludin I.: New product warranty: a literature review, International of Production Economics 79(2002) 231-260.
• [19] Murthy D.N.P., Blischke W.R.: Strategic warranty management: a life-cycle approach, IEEE Transaction on Engineering Management 47 (1) (2000) 40-54.
• [20] Murthy D.N.P.: A new warranty costing model, Mathematical Computer Modeling 13(9) (1990) 59-69.
• [21] Murthy D.N.P.: A usage dependent model of warranty costing, European Journal of Operational Research 57 (1992) 89-99.
• [22] Kim C.S., Djamaludin I., Murthy D.N.P.: Warranty cost analysis with heterogeneous usage intensity, International Transactions in Operational Research 8 (2001) 337-347.
• [23] Patankar J.G., Mitra A.: Effects of warranty execution on warranty reserve costs, Management Science 41(3) (1995) 395-400.
• [24] Nguyen D.G., Murthy D.N.P.: A general model for estimating warranty costs for reparable products, IIE Transactions 16(4) (1984) 379-386.
• [25] Edward P.C. Kao.: An introduction to stochastic processes, China Machine Press, Beijing, 2003.
• [26] Glickman T. S., Berger P. D.: Optimal price and protection period decisions for a product under warranty, Management Science 22(12) (1976) 1381-1390.
• [27] Robinson B., Lakhani C.: Dynamic price models for new product planning, Management Science, 21(10) (1975) 1113-1122.
• [28] Patankar J.G., Mitra A.: Effects of warranty execution on warranty reserve costs. Management Science 41(3) (1995) 395-400.
• [29] Liu Z. J., Huang H. Z., XIE M.: Warranty cost analysis of pro-rata policy for continuous sales process considering warranty execution factors, the Fourth International Conference on Quality and Reliability (ICQR 2005) (2005) 231-237.