On information-based warranty policy for repairable products from heterogeneous population

Hyunju Lee, Ji Hwan Cha, Maxim Finkelstein

Research output: Contribution to journalArticlepeer-review

28 Scopus citations


Preventive maintenance over the warranty period has a crucial effect on the warranty servicing cost. Numerous papers on the optimal maintenance strategies for warranted items have focused on the case of items from homogeneous populations. However, most of real life populations are heterogeneous. In this paper, we assume that an item is randomly selected from a mixed population composed of two stochastically ordered subpopulations and that the subpopulation, from which the item is chosen, is unknown. As the operational history of an item contains the information on the chosen subpopulation, we utilize this information to develop and justify a new information-based warranty policy. For illustration of the proposed model, we provide and discuss relevant numerical examples.

Original languageEnglish
Pages (from-to)204-215
Number of pages12
JournalEuropean Journal of Operational Research
Issue number1
StatePublished - 16 Aug 2016

Bibliographical note

Funding Information:
The authors would like to thank the Editor and the referees for valuable comments and constructive suggestions, which have improved the presentation of this paper considerably. This work was supported by Priority Research Centers Program through the National Research Foundation of Korea (NRF) funded by the Ministry of Education, Science and Technology (No. 2009-0093827 ).

Publisher Copyright:
© 2016 Elsevier B.V. All rights reserved.


  • Mixed population
  • Operational history
  • Repairable item
  • Stochastically ordered subpopulations
  • Warranty policy


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