Software for warranty optimization

Abstract

The research article is associated with warranty optimization. Warranty is one of the most important factors for each organization because it accounts for a large profit in the organizations. In the past research articles, the models developed are only for specific problems of warranty optimization. In this research, a generic model is developed that can be applied to any system for calculating the optimal alternatives, optimal types of warranty policy and optimal warranty durations for various components within a system. The constraints considered in the past by the researches are either related to customer’s criteria or related to manufacturer’s criteria. For the first time, this research article is able to provide solution for warranty optimization considering both the criteria as major constraints together. In this research article, an optimized model of warranty is developed. The model is made in the form of software (OptiW) for easy implementation for the users. This software can be applied to any system having various components like Weibull distribution or exponential distribution. This software can determine the type of warranty policies, type of alternatives used and optimum warranty duration period for various components within a system. In this model, life cycle cost is a non-linear objective function of minimization type subjected to two constraints. The constrains are mean time between failure (MTBF) taking into account the customer’s perspective and spare parts cost taking into account the manufacturers’ perspective. First, the numbers of failures for various warranty plans are simulated using inverse function of the cdf of Weibull distribution. The results of the simulation were required in the optimization model. Genetic algorithm is used to solve non-linear optimization model in the MATLAB. Graphical user interface is developed using guide tool in MATLAB. The software exe file is developed using deploy tool to make this software applicable to any window. Using this software OptiW, an engine problem having 29 components as a case study is solved. The results obtained from the OptiW have reduced life cycle cost as compared to existing model of warranty. The optimum warranty duration for 29 components was larger as compared to various existing warranty models. For the future scope, this research paper can be useful for other extended warranty models or for further research.