Product Overhaul Strategy Formulation under Twodimensional Warranty

Abstract

Abstract: In the previous research on maintenance strategy under warranty, the effect of customer satisfaction on the cost to the manufacturer has been ignored. According to this shortcoming, the hidden loss due to the drop of customer satisfaction is considered in order to develop an effective maintenance strategy under twodimensional warranty for the manufacturer. The expected total cost analysis models under the minimal repair strategy and the overhaul strategy are respectively developed. Taking the sensor of the airbag system in the automobile product for example, the optimal overhaul strategy is obtained through twostage process. The results show that compared with the minimal repair strategy, implementing the overhaul strategy can effectively reduce by 22% the total expected cost to the manufacturer, and increase to 61% the probability of repurchase of the customer. This provides effective decisionmaking support for the manufacturer to formulate the maintenance strategy under twodimensional warranty.

Key words: twodimensional warranty, customer satisfaction, minimal repair, overhaul

WANG Yukun, LIU Zixian. Product Overhaul Strategy Formulation under Twodimensional Warranty[J]. Industrial Engineering Journal .

References

1］MURTHY D N P, DJAMALUDIN I. Product warranty and reliability［J］. Annals of Operations Research, 2006, 143(1): 133-146.
［2］MURTHY D N P, JACK N. Warranty servicing strategies to improve customer satisfaction［J］. IMA Journal of Management Mathematics, 2004, 15(2): 111-124.
［3］BLISCHKE W R, MURTHY D N P. Product warranty management  I: A taxonomy for warranty policies［J］. European Journal of Operational Research, 1992, 62(2): 127-148.
［4］PHAM H, WANG H Z. Imperfect maintenance［J］. European Journal of Operational Research, 1996, 94(4): 425-438.
［5］NGUYEN D G. Studies in warranty policies and product reliability［D］. Australia: The University of Queensland, 1984.
［6］JACK N, VAN DER DUYN SCHOUTEN F. Optimal repairreplace strategies for a warranted product［J］. International Journal of Production Economics, 2000, 67(1): 95-100.
［7］YEH R H. Optimal agereplacement policy for nonrepairable products under renewing freereplacement warranty［J］. IEEE Transactions on Reliability, 2005, 54(1): 92-97.
［8］PASCUAL R, ORTEGA J H. Optimal replacement and overhaul decisions with imperfect maintenance and warranty contracts［J］. Reliability Engineering and System Safety, 2006, 91(2): 241-248.
［9］CHIEN Yuhung. Optimal age for preventive replacement under a combined fully renewable free replacement with a prorata warranty［J］. International Journal of Production Economics, 2010, 124(2): 198-205.
［10］ISKANDAR B P, MURTHY D N P. RepairReplace strategies for TwoDimensional Warranty Policies［J］. Mathematical and Computer Modelling, 2003, 38(9): 1233-1241.
［11］ISKANDAR B P. A new repairreplace strategy for items sold with a twodimensional warranty［J］. Computers & Operations Research, 2005, 32(6): 669-682.
［12］VARNOSAFADERANI S, CHUKOVA S. A twodimensional warranty servicing strategy based on reduction in product failure intensity［J］. Computers and Mathematics with Applications, 2012, 63(2): 201-213.
［13］SHAHANAGHI K, NOOROSSANA R, JALAILNAINI S G, et al. Failure modeling and optimizing preventive maintenance strategy during twodimensional extended warranty contracts［J］. Engineering failure analysis, 2013, 28(1): 90-102.
［14］MANNA D K, PAL S, SINHA S. A userate based failure model for twodimensional warranty［J］. Computers & Industrial Engineeing, 2007, 52(3): 229-240.

[1]	LI Yumin, QIU Meng, HEI Bolin, FANG Zengli. Road-Rail Multimodal Transportation Routing Optimization of Fresh Products Considering High-speed Rail Time Window and Customer Satisfaction [J]. Industrial Engineering Journal, 2021, 24(2): 49-56.
[2]	XIAO Yuhui, LOU Zhenkai. A Model and an Algorithm of Logistics Terminal Node Location Problem Considering Customer Satisfaction [J]. Industrial Engineering Journal , 2019, 22(3): 126-131.
[3]	HU Zuoan, JIA Yezi, LI Bowei, LIU Lu. An Optimization of the Vehicle Routing Problem Based on Customer Satisfaction [J]. Industrial Engineering Journal , 2019, 22(1): 100-107.
[4]	YANG Binbin, YE Chunming. A Research on Multi-skill Worker Scheduling Strategy of MRO [J]. Industrial Engineering Journal , 2017, 20(5): 58-65.
[5]	LUO Jianqiang, WU Qifei, LI Hao, FENG Qinghua. An Optimization Model of Product Service System under Conjoint Perspective [J]. Industrial Engineering Journal , 2017, 20(3): 15-22.
[6]	Dong Ke1,2， Lv Wen-yuan1. Optimal Periodic Preventive Maintenance Policy for Used Equipment under Lease [J]. Industrial Engineering Journal , 2015, 18(5): 14-19.
[7]	Geng Xiu-li, Li Yi-lin . A Revised Fuzzy Importance Performance Analysis Considering Competitive Analysis [J]. Industrial Engineering Journal , 2014, 17(5): 68-74.
[8]	Cheng Lijuan, Wang Jing. Relationship among Perceived Quality, Customer Satisfaction and Customer Retention: An Empirical Research on Haidilao Restaurant [J]. Industrial Engineering Journal , 2013, 16(5): 125-132.
[9]	Zhang Yanliang1, Hu Linlin1, Li Yadong2. A Research on Customer Satisfaction Evaluation in 3PL Enterprises Based on Neural Networks Ensemble [J]. Industrial Engineering Journal , 2013, 16(3): 84-88.