A new warranty policy for heterogeneous items subject to monotone degradation processes

Ji Hwan Cha and Maxim Finkelstein

Journal of Risk and Reliability, 2022, vol. 236, issue 1, 55-65

Abstract: A new renewable warranty policy is suggested that increases the probability of its success and can decrease the corresponding costs for certain ranges of parameters. It deals with heterogeneous populations of items from two subpopulations (‘weak’ and ‘strong’) and is aimed at elimination and further replacement of weak items after screening at some optimal time. This elimination is performed when degradation described by the corresponding mixed degradation process reaches some optimally predetermined level. Probabilistic and cost analyses of the model are performed and the illustrative example is presented. It is shown that the proposed warranty policy with inspection outperforms the conventional one in a probabilistic sense. Furthermore, the proposed policy becomes economically beneficial especially when the additional penalty cost caused by a sudden failure is large.

Keywords: Renewable warranty; mixed degradation process; heterogeneous populations; optimal policy (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/1748006X211028712 (text/html)

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:sae:risrel:v:236:y:2022:i:1:p:55-65

DOI: 10.1177/1748006X211028712

Access Statistics for this article

More articles in Journal of Risk and Reliability
Bibliographic data for series maintained by SAGE Publications ().