TY - JOUR
T1 - Optimal warranty policy with inspection for heterogeneous, stochastically degrading items
AU - Cha, Ji Hwan
AU - Finkelstein, Maxim
AU - Levitin, Gregory
N1 - Funding Information:
The authors are grateful to the reviewers for helpful comments and advices. The work of the first author was supported by Basic Science Research Program through the National Research Foundation of Korea (NRF) funded by the Ministry of Education (Grant Number: 2019R1A6A1A11051177 ).
Publisher Copyright:
© 2020 Elsevier B.V.
PY - 2021/3/16
Y1 - 2021/3/16
N2 - A new renewable warranty policy is suggested that increases probability of its success and can decrease warranty costs. An item from a heterogeneous population is inspected at some intermediate time during a warranty period and, if the observed level of degradation/wear exceeds some optimally predetermined value, it is screened out and replaced by the new one. Deterioration in homogeneous subpopulations of items is modeled by the inverse-Gaussian (IG) process, whereas heterogeneous populations are described by the mixed IG process. Probabilistic and cost analyses of the model are performed and the detailed illustrative example is presented and discussed.
AB - A new renewable warranty policy is suggested that increases probability of its success and can decrease warranty costs. An item from a heterogeneous population is inspected at some intermediate time during a warranty period and, if the observed level of degradation/wear exceeds some optimally predetermined value, it is screened out and replaced by the new one. Deterioration in homogeneous subpopulations of items is modeled by the inverse-Gaussian (IG) process, whereas heterogeneous populations are described by the mixed IG process. Probabilistic and cost analyses of the model are performed and the detailed illustrative example is presented and discussed.
KW - Heterogeneous populations
KW - Maintenance
KW - Mixed inverse-Gaussian process
KW - Optimal warranty policy
KW - Renewable warranty
UR - http://www.scopus.com/inward/record.url?scp=85092239826&partnerID=8YFLogxK
U2 - 10.1016/j.ejor.2020.07.045
DO - 10.1016/j.ejor.2020.07.045
M3 - Article
AN - SCOPUS:85092239826
SN - 0377-2217
VL - 289
SP - 1142
EP - 1152
JO - European Journal of Operational Research
JF - European Journal of Operational Research
IS - 3
ER -