Communications for Statistical Applications and Methods

The Korean Statistical Society (한국통계학회)
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A Bayesian Approach to Optimal Replacement Policy for a Repairable System with Warranty Period

  • Jung, Gi-Mun (BK21 Education Center for Transports in Systems, Chosun University) ;
  • Han, Sung-Sil (BK21, Ewha Womans University)
  • Published : 2002.04.01
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Abstract

This paper considers a Bayesian approach to determine an optimal replacement policy for a repairable system with warranty period. The mathematical formula of the expected cost rate per unit time is obtained for two cases : RFRW(renewing free-replacement warranty) and RPRW(renewing pro-rata warranty). When the failure time is Weibull distribution with uncertain parameters, a Bayesian approach is established to formally express and update the uncertain parameters for determining an optimal replacement policy. Some numerical examples are presented for illustrative purpose.

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References

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  1. Optimal Bayesian Maintenance Policies Following the Expiration of Combination Warranty vol.23, pp.1, 2002, https://doi.org/10.1080/09617353.2002.11690750
  2. Maintenance models in warranty: A literature review vol.229, pp.3, 2013, https://doi.org/10.1016/j.ejor.2013.01.017