A new repair–replace strategy for items sold with a two-dimensional warranty

Bermawi P. Iskandar, D. N. P. Murthy, Nat Jack

Research output: Contribution to journalArticle

96 Citations (Scopus)

Abstract

For repairable items, the manufacturer has the option to either repair or replace a failed item that is returned under warranty. In this paper, we look at a new warranty servicing strategy for items sold with two-dimensional warranty where the failed item is replaced by a new one when it fails for the first time in a specified region of the warranty and all other failures are repaired minimally. The region is characterised by two parameters and we derive the optimal values for these to minimise the total expected warranty servicing cost. We compare the results with other repair–replace strategies reported in the literature.
Original languageEnglish
Pages (from-to)669-682
Number of pages14
JournalComputers and Operations Research
Volume32
Issue number3
DOIs
Publication statusPublished - Mar 2005

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