Abstract
Abstract We develop a mathematical model to study optimal preventive maintenance (PM) strategy under a two-dimensional stair-case warranty policy considering both age and usage of a product. During the warranty term, sellers implement preventive maintenance within the stair-case region of the warranty policy and upon failure a product is repaired minimally and immediately. Our objective is to find the optimal PM strategy that minimizes the seller’s cost of warranty while jointly considering the age and usage intervals of the PM policy and the level of PM executed. We also discuss how our results compare to those in a two-dimensional warranty policy with a rectangular region, and we find that the stair-case policy is preferable for sellers. An algorithm is provided to find the optimal solution and a numerical example is presented to illustrate how to find an optimal strategy with our proposed method. We show numerically that the expected total warranty cost is convex both in the age and the usage of the product under certain conditions.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
