Abstract

Recyclable product is considered as an important policy of environment protect in every country. This paper studies the replacement time for recyclable products with free-repair warranty (FRW) under a planning horizon from the buyer’s viewpoint. Under the planning horizon, the product is replaced once by a new product. Nevertheless, the failure rate of the second product is lower than the failure rate of the first product. During FRW, when the product fails, minimal repair is performed without any cost to the buyer. After FRW, each failure incurs a fixed repair cost to the buyer. However, each failure incurs a fixed downtime cost to the buyer over the planning horizon. The replacement time of the product is investigated for two separate models: before FRW and after FRW. Then, two models are derived and the optimal replacement time is obtained. Finally, numerical examples are given to illustrate the features of the optimal replacement time.

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