Abstract
Sensor embedded products utilize sensors implanted into products during their production process. Sensors are useful in predicting the best warranty policy and warranty period to offer a customer for remanufactured components and products. The conditions and remaining lives of components and products can be estimated prior to offering a warranty based on the data provided by the sensors. This helps reduce the number of claims during warranty periods, determines the right preventive maintenance (PM) policy, and eliminates unnecessary costs inflicted on the remanufacturer. The renewing, one-dimensional Free Replacement Warranty (FRW), Pro-Rata Warranty (PRW), and combination FRW/PRW policies’ costs for remanufactured products and components were evaluated with/without offering PM for different periods in this paper. To that end, the effect of offering renewable, one-dimensional, Free Replacement Warranty (FRW), or Pro-Rata Warranty (PRW), or combination FRW/PRW warranty policies for each disassembled component and sensor embedded remanufactured product was examined, and the impact of sensor embedded products on warranty costs was assessed. A case study and varying simulation scenarios is examined and presented to illustrate the model’s applicability.
Highlights
The increasing tendency in recent years of consumers continually seeking to purchase the latest technology, along with the rapid pace of technological development, has led to diminished product life cycles and an increase in their rate of disposal
In order to determine the optimum strategy offered by the remanufacturer, various warranty and preventive maintenance scenarios were analyzed using pairwise t-tests along with one-way analysis of variance (ANOVA) and Tukey pairwise comparisons tests for every scenario
The effect of using Radio-Frequency Identification (RFID) in ameliorating the quality uncertainty associated with remanufacturing processes has been examined by Kulkarni et al [35], who made use of an application of RFIDs where active RFIDs were used for easy identification and localization of components within a remanufacturing facility, while passive RFIDs, on the other hand, were permanently tagged onto components of remanufacturable products at the beginning of their service life, which was reported by Ferrer et al [36]
Summary
The increasing tendency in recent years of consumers continually seeking to purchase the latest technology, along with the rapid pace of technological development, has led to diminished product life cycles and an increase in their rate of disposal. The information provided by the sensors regarding the missing, replaced, or dysfunctional components prior to disassembly can enable important savings to be had by avoiding wasted efforts in testing, backordering, disposal, disassembly, or holding cost processes [3,4,5] This gave us the motivation to scrutinize and study the effect of offering non-renewing warranties for products with sensors containing the information within the sensor-embedded remanufactured products. In order to determine the optimum strategy offered by the remanufacturer, various warranty and preventive maintenance scenarios were analyzed using pairwise t-tests along with one-way analysis of variance (ANOVA) and Tukey pairwise comparisons tests for every scenario This is the first study that evaluates in a quantitative and comprehensive manner the potential benefits of offering one-dimensional renewable warranties with preventive maintenance on remanufactured products.
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