The Effects of Salvage Value on the Age-Replacement Policy under Renewing Warranty
نویسندگان
چکیده
This paper presents the effects of salvage value on the optimal age-replacement policy for non-repairable products sold with a renewing free-replacement warranty (RFRW). Cost models from the customer’s perspective are developed for both warranted, and non-warranted products. The corresponding optimal replacement ages are derived such that the long-run expected cost rate is minimized. Under the increasing failure rate assumption, the existence and uniqueness of the optimal age for preventive replacement are shown, and the impacts of a RFRW on the optimal age-replacement policy are investigated analytically. Finally, a numerical example is provided for the optimal policy illustrated and verification.
منابع مشابه
Optimal overhaul–replacement policy for a multi-degraded repairable system sold with warranty
In this research, we study an optimal overhaul–replacement policy of a multi-degraded repairable system sold with a free replacement warranty. In the proposed replacement policy, a maintenance action and failure are dependent on a system degradation level and the system age, and hence the replacement model will provide more effective maintenance decisions. Failure of the system is modeled using...
متن کاملA new warranty servicing strategy ⎯ adding the renewing free-replacement warranty to the rebate policy
In this study, a new warranty service strategy is proposed and analyzed. This strategy adds the renewing free-replacement warranty to a non-repairable product sold under the rebate warranty policy. According to the renewing free-replacement warranty, the seller (manufacturer) is responsible for replacing all failed product during the warranty period, and the warranty begins anew with each repla...
متن کاملOn Renewing Warranty Cost Analysis Using Quasi-renewal Processes
Amongst the many approaches in modelling deteriorating systems with product warranty, renewing warranty has found favor in designing such systems. In this chapter our attention is focused on renewing warranty policy modelled using quasi-renewal inter repair times. With the basic classification of warranty policies viewed in the previous chapters, the warranties are further categorized as renewi...
متن کاملOptimal burn-in time and warranty length under fully renewing combination free replacement and pro-rata warranty
Warranty is an important factor of marketing products; however, warranty always involves additional costs to the seller and these costs usually depend on product reliability. Burn-in is considered as a part of the production process in which the manufactured products are operated under accelerated stresses for a short time period before their release and has been applied as a way for enhancing ...
متن کاملModeling Total Expenditure on Warranty Claims
We approximate the distribution of total expenditure of a retail company over warranty claims incurred in a fixed period [0, T ], say the following quarter. We consider two kinds of warranty policies, namely, the non-renewing free replacement warranty policy and the non-renewing pro-rata warranty policy. Our approximation holds under modest assumptions on the distribution of the sales process o...
متن کامل