A maintenance strategy for two-dimensional extended warranty based on dynamic usage rate

Peng Tong, Xuefeng Song and Liu Zixian

International Journal of Production Research, 2017, vol. 55, issue 19, 5743-5759

Abstract: Maintenance strategies are commonly used for repairable products or items to reduce the warranty cost in the warranty coverage. This study proposes a new warranty maintenance strategy for two-dimensional extended warranty (EW) based on dynamic usage rate. Unlike previous studies that assumed a constant usage rate, the present study regards the consumer usage rate as dynamic in the two-dimensional EW coverage. A maintenance model is constructed to determine the optimal maintenance degree of warranty claim points and help service providers accurately estimate and reduce warranty cost. A numerical example of an automobile made in China is discussed to demonstrate the effectiveness of the proposed model. The formulated model can effectively reflect the changes in the consumer usage rate and thus helps service providers develop an accurate maintenance strategy. Meanwhile, the developed model can better reduce warranty cost compared with maintenance strategies with minimal repair.

Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://hdl.handle.net/10.1080/00207543.2017.1330573 (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:55:y:2017:i:19:p:5743-5759

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

DOI: 10.1080/00207543.2017.1330573

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 ().