• Title/Summary/Keyword: Warranty Cost

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Cost Analysis of Manufacturer Under the Free Replacement, Pro-rata, Hybrid and Stepdown Warranty Policy (단계별 사후보증제도와 무료, 비율, 혼합형 보증제도에서 제조업자 입장의 비용분석)

  • 김원중;김재중
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.12 no.20
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    • pp.39-45
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    • 1989
  • This article is concerned with cost analysis in product warranty policy. The warranty cost can be different according to warranty rate and warranty renewal policy. In this paper the stepdown warranty is used. The warranty renewal policy is considered when the warranty is received upon free replacement period as item failing. Assuming the non repairable item as one item is sold, investigated manufacturer's cost in stepdown warranty policy. Also manufacturer's cost is calculated in the free replacement. pro-rata. hybrid policy. Numerical example is given over Weibull time to failure distribution, comparing stepdown warranty policy with free replacement, pro-rata, hybrid one in the manufacturer's point of view. The sensitivity analysis of warranty cost according to the number of warranty period step is included.

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Replacement model under warranty with age-dependent minimal repair

  • Park, Minjae
    • International Journal of Reliability and Applications
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    • v.18 no.1
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    • pp.9-20
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    • 2017
  • In this paper, we consider a renewable repair-replacement warranty strategy with age-dependent minimal repair service and propose an optimal maintenance model during post-warranty period. Such model implements the repair time limit under warranty and follows with a certain form of system maintenance strategy when the warranty expires. The expected cost rate is investigated per unit time during the life period of the system as for the standard for optimality. Based on the cost design defined for each failure of the system, the expected cost rate is derived during the life period of the system, considering that a renewable minimal repair-replacement warranty strategy with the repair time limit is provided to the customer under warranty. When the warranty is finished, the maintenance of the system is the customer's responsibility. The life period of the system is defined and the expected cost rate is developed from the viewpoint of the customer's perspective. We obtain the optimal maintenance strategy during the maintenance period by minimizing such a cost rate after a warranty expires. Numerical examples using field data are shown to exemplify the application of the methodologies proposed in this paper.

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Cost analysis of RRNRW from the manufacturer's perspective (재생교체-비재생수리보증에 대한 생산자 측면의 비용분석)

  • Jung, Ki Mun
    • Journal of Applied Reliability
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    • v.12 no.4
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    • pp.255-263
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    • 2012
  • This paper considers the cost analysis from the manufacturer's point of view for renewing replacement and non-renewing repair warranty(RRNRW) of a repairable system. To do so, we consider the renewing replacement and non-renewing repair warranty, which is proposed by Jung(2011). To analysis the expected warranty cost from the manufacturer's perspective for renewing replacement and non-renewing warranty, we obtain the expected total warranty cost and the expected warranty length which are very important information for the manufacturer. Finally, the numerical examples are presented for illustrative purpose.

Cost Analysis of Manufacturer's View Point Under Stepdown Warranty Policy

  • Kim, Jae Joong;Kim, Won Joong
    • Journal of Korean Society for Quality Management
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    • v.19 no.1
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    • pp.103-114
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    • 1991
  • This article is concerned with cost analysis in warranty policy. The warranty cost can be different according to warranty rate and warranty renewal policy. In this paper the stepdown warranty policy is analyzed. Assuming the nonrepairable item, manufacturer's cost is calculated in stepdown warranty policy and free replacement, pro-rata, hybrid policy. Numerical examples are given over Weibull time-to-failure distribution.

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Warranty Cost Models for a Second-Hand Products

  • Kim, Che-Soong
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.22 no.53
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    • pp.1-12
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    • 1999
  • A warranty cost analysis for new products have received a lot of attention. In contrast, there is hardly any literature on similar analysis for second-hand products. The market of second-hand products has been increasing and along with that the importance of warranties for second-hand products has also been increasing. However, warranty policies similar to new products are not economically acceptable to dealers. One needs to formulate new warranty policies and models to estimate expected warranty costs for second-hand products. This paper proposes one-dimensional cost sharing warranty policies and develops models at system level to analysis warranty cost for second-hand products sold with these policies.

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Cost Analysis on Warranty Policies Using Freund's Bivariate Exponential Distribution

  • Park, Minjae;Kim, Jae-Young
    • Journal of Korean Society for Quality Management
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    • v.42 no.1
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    • pp.1-14
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    • 2014
  • Purpose: In this paper, the minimal repair-replacement warranty policy is used to carry out a warranty cost analysis with warranty servicing times and failure times that are statistically correlated to bivariate distributions. Methods: Based on the developed approach by Park and Pham (2012a), we investigate the property of the Freund's bivariate exponential distribution and obtain the number of warranty services using the field data to conduct the warranty cost analysis. Results: Maximum likelihood estimates are presented to estimate the parameters and the warranty model is investigated using a Freund's bivariate exponential distribution. A numerical example is discussed to deal with the applicability of the developed approach in the paper. Conclusion: A novel approach of analyzing the warranty cost is proposed for a product in which failure times and warranty servicing times are used simultaneously to investigate the eligibility of a warranty claim.

Replacement Model after Extended Two-phase Warranty (연장된 이단계 보증 이후의 교체모형)

  • Jung, Ki Mun
    • Journal of Integrative Natural Science
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    • v.14 no.4
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    • pp.197-204
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    • 2021
  • Under the two-phase warranty, the warranty period is divided into two intervals, one of which is for renewing replacement warranty, and the other is for minimal repair warranty. Jung[13] discusses the two types of extended two-phase warranty models. In this paper, we suggest the replacement model after the extended two-phase warranty that has been proposed by Jung[13]. To determine the optimal replacement policy, we adopt the expected cost rate per unit time. So, the expressions for the total expected cost, the expected length of the cycle and the expected cost rate per unit time from the user's point of view are derived. Also, we discuss the optimal replacement policy and the uniqueness of the solution for the optimization. Furthermore, the numerical examples are provided to illustrate the proposed the replacement model.

Preventive Maintenance Policy Following the Expiration of Extended Warranty Under Replacement-Repair Warranty (교체-수리보증 하에서 연장된 보증이 종료된 이후의 예방보전정책)

  • Jung, Ki Mun
    • Journal of Applied Reliability
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    • v.14 no.2
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    • pp.122-128
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    • 2014
  • In this paper, we consider the periodic preventive maintenance model for a repairable system following the expiration of extended warranty under replacement-repair warranty. Under the replacement-repair warranty, the failed system is replaced or minimally repaired by the manufacturer at no cost to the user. Also, under extended warranty, the failed system is minimally repaired by the manufacturer at no cost to the user during the original extended warranty period. As a criterion of the optimality, we utilize the expected cost rate per unit time during the life cycle from the user's perspective. And then we determine the optimal preventive maintenance period and the optimal preventive maintenance number by minimizing the expected cost rate per unit time. Finally, the optimal periodic preventive maintenance policy is given for Weibull distribution case.

Optimal Burn-in Time under Cumulative Pro-Rata Replacement Warranty

  • Yun, Won-Young;Lee, Yang-Woo;Chung, Il-Han;Luis Ferreira
    • International Journal of Reliability and Applications
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    • v.2 no.4
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    • pp.241-251
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    • 2001
  • In this paper, optimal bum-in time to minimize the total mean cost, which is the sum of manufacturing cost with burn-in and cumulative warranty-related cost, is obtained. When the products with cumulative pro-rata warranty have high failure rate in the early period (infant mortality period), a burn-in procedure is adopted to eliminate early product failures. After burn-in, the posterior product life distribution and the warranty-related cost are dependent on burn-in time; long burn-in period may reduce the warranty-related cost, but it increases the manufacturing cost. The paper provides a methodology to obtain total mean cost under burn-in and cumulative pro-rata warranty. Property of the optimal burn-in time is analyzed, and numerical examples and sensitivity analysis are studied.

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The Cost Analysis of Consumer's View of the Stepdown Warranty Policy (단계별 사후보증제도에서의 소비자비용분석)

  • 김원중;김재중
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.11 no.17
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    • pp.55-65
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    • 1988
  • This article suggests the costs analysis of resumer's view under the stepdown warranty is renewd whenever a failure occurs in the warranty period. And the general warranty policy is showed such as free replacement policy prorata warranty policy, hybrid warranty policy. In this respect case, the cost of consumer is also calculated. In order to study the cost analysis of consumer. "RENEWAL THEORY" is introduced and the cost of consumer is calculated.alculated.

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