Authors: Y. Sarada, M. Mubashirunnissa
Addresses: Department of Mathematics, College of Engineering, Anna University, Chennai 600025, Tamil Nadu, India. ' Department of Mathematics, College of Engineering, Anna University, Chennai 600025, Tamil Nadu, India
Abstract: This research aims to develop two stochastic models, based on the characterisation of the system failure and to compute the expected warranty cost for a second-hand product, when the products are sold with free replacement and/or pro rata warranties. A two-dimensional warranty, which focuses on both age and usage of the system, has been considered for the above warranty models. Further, a numerical example is provided to demonstrate the methodology of the developed model, using bivariate Weibull and exponential distributions. Also, the sensitivity analysis performed exhibits the effect of the parameters on the cost functions.
Keywords: free replacement warranty policy; pro rata warranty policy; expected warranty costs; renewal function; second-hand products; stochastic modelling.
International Journal of Operational Research, 2011 Vol.12 No.1, pp.34 - 55
Available online: 08 Aug 2011 *Full-text access for editors Access for subscribers Purchase this article Comment on this article