Optimal warranty option and post-warranty maintenance strategy under a warranty menu: from a consumer perspective

Peirui Qiao, Ming Luo, Yizhong Ma and Abdul Jabbar

International Journal of Production Research, 2024, vol. 62, issue 5, 1586-1608

Abstract: As manufacturers continue to provide new and unique products and services for their customers, we argue that warranty menus with differentiated options are an often-overlooked unique selling point. Meanwhile, there is a huge swathe of customers who own durable products which are still in use even after the expiration of a warranty. It is in this area that we develop a research perspective which urges customers to consider warranty plans and post-warranty maintenance strategies simultaneously when making a purchasing decision. In this paper, through the lens of a consumer, we propose an integrated model of warranty and post-warranty maintenance under a flexible renewable warranty. This model takes into account repair limits and multiple failure types with time-varying probabilities. As part of this, a new post-warranty maintenance strategy is designed, in which the repair time-based corrective replacement and the age-based preventive replacement are combined. The life cycle cost rate of the product is minimised by a synthetic decision-making about the consumer’s warranty purchase and post-warranty maintenance strategy. Numerical studies show that there exists a joint optimal solution, which can help the customer to develop an optimal overall warranty-maintenance strategy under the warranty menu with minimised cost rate.Highlights An integrated model of warranty and post-warranty maintenance is developed.The warranty product has minor and catastrophic failures with time-varying probabilities.A flexible renewable warranty is considered for the consumer.A post-warranty maintenance strategy with the repair time limit is proposed.The optimal warranty-maintenance strategy is derived to minimise the Life cycle cost rate.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00207543.2023.2197513 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:tprsxx:v:62:y:2024:i:5:p:1586-1608

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TPRS20

DOI: 10.1080/00207543.2023.2197513

Access Statistics for this article

International Journal of Production Research is currently edited by Professor A. Dolgui

More articles in International Journal of Production Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().