ABSTRACT
Due to the non-substitutability of the product, the monopoly manufacturer designs warranty to reduce maximally warranty cost. Although the monopoly manufacturer maintains responsibly product reliability in warranty, the consumer still confronts a problem about how to sustain product reliability after the designed warranty expires. Goal of this paper is, from the consumer’s perspective, to propose a reliability maintenance policy after expiry of the monopoly manufacturer’s warranty. First, a renewable repair-limit pro-rata replacement warranty (RRLPRRW) policy is considered from viewpoint of the monopoly manufacturer and used as a quality guarantee of the product with the deterioration affected by internal aging and external shock. Second, depreciation cost is earlier considered in the process of modeling life cycle cost, which differs from the traditional works on the consumer’s post-warranty reliability maintenance problem. Third, the consumer’s discounted cost rate model considering depreciation cost is derived to achieve optimal maintenance policy. Finally, a numerical example is provided to illustrate our approach. It was found that the proposed maintenance policy is more effective and the depreciation cost considered in life cycle cost has significant effect on extension of the post-warranty period.
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No potential conflict of interest was reported by the authors.
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Notes on contributors
Lijun Shang
Lijun Shang is currently a PhD student in the School of Mechanical Engineering, Northwestern Polytechnical University. He received his MS degree in 2014 from Shijiazhuang Tiedao University. His research includes warranty cost analysis, maintenance decision and importance measure of component.
Zhiqiang Cai
Zhiqiang Cai is a professor in the School of Mechanical Engineering, Northwestern Polytechnical University, China (NPU). He is also a member of IEEE and IEEE RS. He received his BS degree and MS degree in 2003 and 2006 at NPU. He received his PhD degree in 2010 at NPU, majored in Management Science and Engineering. His research topics include reliability modeling and maintenance management.
Hudong Chen
Hudong Chen is currently an engineer in the Equipment Maintenance Center of Shenhua Zhunneng Company. His research includes warranty cost analysis, maintenance decision and optimization.
Shuai Zhang
Shuai Zhang is currently a lecturer in the School of Mechanical Engineering, Northwestern Polytechnical University, China (NPU). She received her BS degree in 2004 and received her MS degree in 2008 at NPU, majored in Mechatronics Engineering. Her research topics include phased-mission systems, binary decision diagram, multi-state multi-valued decision diagram and reliability evaluation.