Optimization of extended warranty cost for multi-component systems with economic dependence based on group maintenance

Abstract

During extended warranty (EW) period, maintenance events play a key role in controlling the product systems within normal operations. However, the modelling of failure process and maintenance optimization is complicated owing to the complex features of the product system, namely, components of the multi-component system are interdependent with each other in some form. For the purpose of optimizing the EW pricing decision of the multi-component system scientifically and rationally, taking the series multi-component system with economic dependence sold with EW policy as a research object, this paper optimizes the imperfect preventive maintenance (PM) strategy from the standpoint of EW cost. Taking into consideration adjusting the PM moments of the components in the system, a group maintenance model is developed, in which the system is repaired preventively in accordance with a specified PM base interval. In order to compare with the system EW cost before group maintenance, the system EW cost model before group maintenance is developed. Numerical example demonstrates that offering group maintenance programs can reduce EW cost of the system to a great extent, thereby reducing the EW price, which proves to be a win-win strategy to manufacturers and users.