Abstract
Two-dimensional warranty has played a significant role in improving product quality and competitiveness. However, two-dimensional basic warranty (BW) and extended warranty (EW) have not yet been combined effectively, and the customized maintenance strategies based on the consumers’ heterogeneity have been quite limited, which result in high maintenance costs. In this paper, the possibility of reducing warranty cost over BW and EW is explored by classifying customers based on their usage rates and then offering them with customized preventive maintenance (PM) strategies. By considering the purchasing ratio of EW contracts, the PM strategies for BW and EW are closely combined by the bi-level programming model. Numerical analysis is given to show the application of the proposed warranty strategy, and the significant findings and sensitivity of the main parameters are analyzed in the end. The findings demonstrate that the customized PM strategies combining BW and EW can effectively reduce warranty costs within the warranty period and provide a scientific guidance for manufacturers to design a more reasonable PM strategy.
Highlights
In an increasingly fierce competitive market environment, many manufacturers begin to offer attractive warranty service for capturing more market share and customer loyalty
Assuming that manufacturers minimally repair all failures with negligible duration and do not implement any preventive maintenance (PM) strategy, the failures over time follow a nonhomogeneous Poisson process (NHPP), in which the conditional failure intensity function is λ(t|r) φ(t, u), where φ(t, u) denotes nondecreasing function of both t and u. erefore, a point process with an intensity function can be adopted to model product failure, which is dependent on both t and u
On the contrary, when the purchasing ratio of extended warranty (EW) contract PEi, ∀i ∈ [1: N] is set to be 1, it implies that all consumers will purchase EW services before the end of the basic warranty (BW) period, and the optimal maintenance researches for BW and EW can be modeled by a unified warranty period (UND), as studied by Wang et al
Summary
In an increasingly fierce competitive market environment, many manufacturers begin to offer attractive warranty service for capturing more market share and customer loyalty. For a dump truck sold with different two-dimensional BW contracts, Nasrum et al [13] suggest that preventive maintenance with different time intervals can effectively reduce warranty servicing cost, which is examined by a numerical example. Considering both product availability and warranty cost, a warranty service combining minimal repair and the imperfect preventive maintenance is presented by Cheng et al [5] to minimize the product’s cost-efficiency per unit time. The study designs a customized periodic PM strategy for the customers with different usage rates, and combines the maintenance strategies between BW and EW with the bi-level programming model, for which the warranty servicing cost of the manufacturers is minimum as a whole.
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