For products sold with warranty, preventive maintenance actions by manufacturers and/or buyers have an impact on the total costs for both parties. This paper develops a framework to study preventive maintenance actions when items are sold under warranty and reviews the models that have appeared in the literature. It then develops a new model and carries out its analysis.
Models for cost analysis of one-dimensional warranty policies assume that the usage intensity (or rate) is the same for all users. In real life the usage intensity varies across the population of users. This paper deals with some simple models to study the expected warranty cost for products sold with free replacement warranty with varying usage intensity.
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