A preventive maintenance policy with usage-dependent failure rate thresholds under two-dimensional warranties

Shizhe Peng, Wei Jiang and Wenhui Zhao

IISE Transactions, 2021, vol. 53, issue 11, 1231-1243

Abstract: This article considers Preventive Maintenance (PM) under a two-dimensional (2-D) warranty contract with time and usage limits. From a manufacturer’s point of view, we develop a dynamic maintenance model with a random horizon to include the impact of random and dynamic usage rates on PM decisions. The model treats the cumulative amount of usage as a state variable that provides information about the failure rate and the expiration of the 2-D warranty. We characterize the optimal PM policy by a sequence of usage-dependent failure rate thresholds. Each threshold is a function of the cumulative usage. Our failure rate threshold policy chooses one of the following two actions in each period: performing perfect PM or no PM. Specifically, the manufacturer should bring the failure rate back to its original level when it exceeds the threshold in the corresponding period. This policy is also optimal under a constant usage rate. In the numerical experiments, we demonstrate the effectiveness of the proposed policy and conduct a sensitivity analysis to investigate how this policy is affected by the model parameters.

Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://hdl.handle.net/10.1080/24725854.2020.1825879 (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:uiiexx:v:53:y:2021:i:11:p:1231-1243

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/uiie20

DOI: 10.1080/24725854.2020.1825879

Access Statistics for this article

IISE Transactions is currently edited by Jianjun Shi

More articles in IISE Transactions from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().