Article ID: | iaor20073552 |
Country: | United Kingdom |
Volume: | 13 |
Issue: | 2 |
Start Page Number: | 121 |
End Page Number: | 129 |
Publication Date: | Apr 2002 |
Journal: | IMA Journal of Management Mathematics (Print) |
Authors: | Murthy D.N.P., Jack N. |
Keywords: | warranty, preventative maintenance |
When products are sold under warranty, the manufacturer incurs additional costs for warranty servicing. Preventive maintenance actions can be used to reduce this cost and these are worthwhile only if the extra cost incurred is less than the reduction achieved. In this paper we propose a new preventive maintenance policy where the parameters are selected optimally to minimize the total warranty servicing cost.