Article ID: | iaor2001648 |
Country: | Netherlands |
Volume: | 123 |
Issue: | 3 |
Start Page Number: | 519 |
End Page Number: | 530 |
Publication Date: | Jun 2000 |
Journal: | European Journal of Operational Research |
Authors: | Murthy D.N.P., Zuo Ming J., Liu Bin |
Keywords: | warranty |
In this paper we study a warranty servicing policy for a class of multi-state deteriorating and repairable products. The manufactur's decision to repair or replace a failed item depends on two parameters, the deterioration degree of the item and the length of the residual warranty period. We examine the optimal value of these two parameters to minimize the manufacturer's expected warranty servicing cost per item sold.