Optimal Extended Warranty Policies under Different Maintenance Options

Extended warranty has recently obtained increasing attention from both manufacturers and customers in China. In this paper,given the reality of China, two types of non-renewing extended warranty were proposed: one-dimensional extended warranty and two-dimensional extended warranty. And a combined warranty policy including pro-rata warranty policy and free-repair warranty policy was applied in these two types of warranty. Then the expected life-cycle cost models from the manufacturer and consumer's perspectives were developed considering different maintenance options. The optimal warranty policy, maintenance options,and warranty price were adopted in terms of a win-win interval which was determined by the maximum extra cost the consumer should pay and the minimum price the manufacture should sell at the extended warranty. Finally,a case study was given to prove the effectiveness and validity of the model.

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

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.

Optimal replacement policy of products with repair-cost threshold after the extended warranty

The reliability of the product sold under a warranty is usually maintained by the manufacturer during the warranty period.After the expiry of the warranty, however, the consumer confronts a problem about how to maintain the reliability of the product.This paper proposes, from the consumer's perspective, a replacement policy after the extended warranty, under the assumption that the product is sold under the renewable free replacement warranty(RFRW) policy in which the replacement is dependent on the repair-cost threshold. The proposed replacement policy is the replacement after the extended warranty is performed by the consumer based on the repair-cost threshold or preventive replacement(PR) age, which are decision variables. The expected cost rate model is derived from the consumer's perspective. The existence and uniqueness of the optimal solution that minimizes the expected cost rate per unit time are offered. Finally, a numerical example is presented to exemplify the proposed model.

Optimization of post-warranty sequential inspection for second-hand products

This paper considers an optimal sequential inspection schedule for a second-hand product after that the free nonrenewable warranty is expired. The length of warranty is prespecified and during the warranty period, the product is minimally repaired by the dealer when it fails. Following the expiration of the non-renewing warranty, the product is inspected and upgraded sequentially a fixed number of times at the expenses of the customer.At each inspection, the failure rate of the product is reduced proportionally so that the product is upgraded. The product is assumed to deteriorate as it ages and the replacement of the product occurs when a fixed number of inspections are rendered. In addition,the intervals between two successive inspections are assumed to decrease monotonically. The main objective of this paper is to determine the optimal improvement level to upgrade the product at each inspection so that the expected maintenance cost during the life cycle of the product is minimized from the perspective of the customer. Under the given cost structures, we derive an explicit formula to obtain the expected maintenance cost incurred during the life cycle of the product and discuss the method to find the optimal level of the improvement analytically in case the failure times follow the Weibull distribution. Numerical results are analyzed to observe the impact of relevant parameters on the optimal solution.

Reliability Model for Key Devices with Compound Preventive Warranty

With the warranty requirements of key and important devices,the compound preventive warranty policy was introduced.For the effectiveness of compound preventive maintenance, the maintenance mode of periodic replacement with functional checks was adopted, its failure risk analysis was carried on, and the warranty reliability model was established. On the basis of above research,a numerical example was given to illustrate the engineering application and generality of the warranty reliability model.

guarantee同warranty的区别

虽然这两个词可以相互替换使用,但是实际上它们还是有些区别的。特别是在广告术语中,区分两者是非常必要的。这主要是两者在广告中所要表达的意思和所起的怍用有所不同。下面就从术语的角度将这两个词加以分析和说明。有一本名为 A Guide to Correct Legal Issues In Advertising(by

Coordinating an Extended Warranty Supply Chain under Increasing,Constant and Decreasing Product Failure Rates

A product typically exhibits three different failure rates across its lifetime:increasing,decreasing,or constant.This paper studies how the characteristics of failure rate impact the supply chain coordination for an extended warranty program involving a manufacturer and a retailer.A two-stage Stackelberg game is utilized to model the interaction between these two players.Two extended warranty channel structures are compared depending on whether the manufacturer or the retailer offers the warranty service.The analysis shows that the failure rate trend during the warranty period has different effects on the coordination of the service supply chain.When a product has an increasing or constant failure rate,the optimal length of extended warranty offered by the retailer is longer than that of the manufacturer,while the optimal length is shorter for a product with a decreasing failure rate.If a product during the warranty coverage has an increasing or constant failure rate,a longer extended warranty period will motivate customers to buy the product without the warranty,whereas more customers will buy both the product and the warranty if the product experiences a decreasing failure rate.It is concluded that,if the manufacturer and the retailer incur the same warranty service cost,the total profit in the supply chain is higher when the manufacturer offers the extended warranty.From the game participants'perspective,the one which sells the extended warranty will obtain more profit.

Optimal Age Replacement Policy with Replacement Occurrence While the Warranty is in Effect

This study considers an age replacement policy(ARP) for a repairable product with an increasing failure rate with and without a product warranty. As for the warranty policy to consider in association with such an age replacement policy, we adapt a renewable minimal repair-replacement warrant(MRRW) policy with 2D factors of failure time of the product and its corresponding repair time. The expected cost rate during the life cycle of the product is utilized as a criterion to find the optimal policies for both with and without the product warranty. We determine the optimal replacement age that minimizes the objective function which evaluates the expected cost rate during the product cycle and investigate the impact of several factors on the optimal replacement age. The main objective of this study lies on the generalization of the classical age replacement policy to the situation where a renewable warranty depending on 2D factors is in effect. We present some interesting observations regarding the effect of relevant factors based on numerical analysis.

Modelling Upgrading Maintenance Policy in the One-Dimensional Renewing Warranty Period

In the one-dimensional renewing warranty period,the quality of the spares for product is likely to be improved during the warranty period.Therefore,upgrading maintenance becomes more and more common.Then the manufacturers(customers) may have to decide whether or not to provide(buy) the warranty considering upgrading maintenance.This paper presents a mathematical model considering upgrading maintenance for products with multiple failure modes.Upgrading maintenance is taken into account with the assumption that the warranted item is upgraded one time during the warranty cycle.The upgrading maintenance is carried out,when the corrective maintenance is taken place.After upgrading maintenance,the high-quality spares are used to replace the failed item.In the numerical example,the results of the models are calculated.Monte Carlo simulation results are compared with the analytical results to demonstrate the correctness and efficiency of the proposed models considering upgrading maintenance.

Warranty and Preventive Maintenance Analysis for Sustainable Reverse Supply Chains

In addition to being environmentally friendly,remanufactured products are popular with consumers because they offer the latest technology at a lower price,in comparison to brand new products.However,some consumers hesitate to buy remanufactured products because they are skeptical about their quality.Thus,they are unsure of the extent to which the product will render services when compared to a new product.A promotional marketing strategy employed by remanufacturers is to offer warranties for these products.To that end,this study scrutinizes the impact of offering non-renewing warranties on remanufactured products.Specifically,in this paper,a methodology is suggested,which simultaneously minimizes the cost incurred by the remanufacturers and maximizes consumer confidence toward buying remanufactured products.This study uses a discrete-event simulation to optimize the implementation of a two-dimensional non-renewing warranty policy for remanufactured products.The implementation is illustrated using a specific product recovery system called the Advanced Remanufacturing-To-Order system.The experiments in the study were designed using Taguchi’s Orthogonal Arrays to represent the entire domain of the recovery system to observe system behavior under various experimental conditions.

Warranty Claims Forecasting for New Products Sold with a Two-Dimensional Warranty

Warranty claims forecasting plays an increasingly important role not only for preparing financial plans but also for optimizing warranty policy and improving after-sale services.In the case of new products,an important feature is that the new generation of products often has a close connection with the previous generations of products it replaces.Thus,the warranty claims data of the previous generations of products can be used for extracting reliability information of new products.In this context,we propose a warranty claims forecasting model considering usage rate for new products sold with a two-dimensional warranty.The accelerate failure time model is introduced to investigate the effect of usage rate on product degradation.The non-homogeneous Poisson process is used to model failure counts of repairable products and the constrained maximum likelihood estimation method is used to estimate model parameters.The results of data experiments based on both simulation and real data collected from an automobile manufacturer in China show that the proposed model considering the varying usage rate outperforms the traditional models in forecasting the number of warranty claims.

Coordination of e-commerce supply chain when e-commerce platform providing sales service and extended warranty service

With the rapid development of cybereconomy and the enhancement of sales service,many e-commerce platforms provide extended warranty service to alleviate consumers from worries about product quality when consumers purchasing products online.This study examines the decisions and coordination of the e-commerce supply chain where the e-commerce platform dominates and provides sales service and extended warranty service.The findings show that the centralised decision-making model is an ideal model because of the low sales price,high service level and high extended warranty price.With the increase of the consumers’sensitivity coefficient to the extended warranty service price,sales price increases but extended warranty service price and service level decrease,the retailer’s profit and the platform’s profit decrease.The proposed contract of‘revenue sharing joint commission’can realise the coordination of ecommerce supply chain.

ANALYSIS OF WARRANTY POLICIES

There are some warranty policies commonly used: (1) Free-replacement warranty policy (FRW). (2) Pro-rata warranty policy (PRW). (3) Combination policies. In this paper) a brief review of policies 1 and 2 as well as some new distribution properties of successive purchase times under the combination policies are given. In addition, a new warranty policy is suggested. Under this policy the failed item within free replacement period [0,W] is subjected to minimal repair. Under certain cost structure, the long run average cost of customers and the profit of producers are analyzed. Finally, some examples are given.

Simultaneous settings of order quantity,wholesale price,production run length,process mean,and warranty period

In this article,the authors propose a modified version of S.L.Chen and Liu’s model with a two-stage production system.Assume that the retailer’s order quantity is concerned with the manufacturer’s selling price and the warranty period of product.The used cost of the customer is measured under the Taguchi’s quadratic quality loss function and concluded in the retailer’s profit function.The quality of the lot for the manufacturer is determined by adopting a two-stage single sampling rectifying inspection plan.The modified economic manufacturing quantity(EMQ)model is addressed in formulating the manufacturer’s expected profit.The retailer’s order quantity,manufacturer’s wholesale price,production run length,process mean,and warranty period of product will be jointly determined by maximizing the total expected profit of the supply chain system including the manufacturer and the retailer.Finally,the quality investment policy is introduced to illustrate the profit improvement for the supply chain system.

The Convention on the Elimination of All Forms of Discrimination against Women and China's Actions

Aimed at eliminating all forms discrimination against women, ensuring human rights and fundamental freedoms for women in all fields and realizing de-facto equality between men and women, the Convention on the Elimination of All Forms of Discrimination Against Women adopted by the U.N. General Assembly is a most significant and most comprehensive legal document concerning the protection of human rights of women, which is called "The Charter of the Human Rights of Women." This thesis reviews the achievements and problems in the fulfillment by the Chinese government of obligations under the Convention after signing and ratifying it; and also puts forward some feasible approaches for improvement thereof.

A supply chain model with two competitive buyers under a hybrid greening cost and revenue-sharing contract

This article considers a vendor-buyer supply chain model where a single vendor produces a single product and markets it through two competitive buyers to a group of customers.The customer demand for the product depends on the selling price,green level and warranty period of the product.Successive deliveries from the vendor are scheduled at a fixed time interval wherein the subsequent shipments appear when each of the buyer’s inventories from the former delivery has just been cleared out.A hybrid greening cost and revenue sharing(HGRS)contract is introduced,which provides more profit to individual members than their decentralised profits.The numerical study reveals that,under the HGRS contract,customers are influenced to buy a more reliable product at a reasonable price with a higher green level.A sensitivity analysis is also carried out to examine the impact of key model parameters on the optimal results.

Optimal periodic replacement policy for a warranted product subject to multi modes failure process

A complex product subjects to multiple failure modes such as minor and catastrophic failure with some probability.This paper investigates the effects of minor failure and catastrophic failure on the periodic replacement policy for a complex product supported by a warranty period.Cost models are developed and the expected optimal replacement policies are developed analytically such that long run expected life-cycle cost rate is minimized.Structural properties of the optimal replacement policies are derived for a product which fails with multiple failure modes and the failure rate is an increasing function of time.Finally,a numerical experiment is performed to show the important features of our study.