Money-back guarantee warranty policy with preventive maintenance strategy for sensor-embedded remanufactured products

Abstract

In today's global environment, technology is constantly evolving. Being able to stay up-to-date with the very latest technological advances can be extremely hard to accomplish. As a result of these changes and developments in technology, which often come unexpectedly, consumers are frequently tempted to update their devices to the very latest model. The result is that the life cycle of a product is becoming shorter and shorter than before. Manufacturers attempt to respond to consumers' concerns involving environmental issues as well as the more governmentally stringent environmental legislations by establishing facilities which include the minimization of the totality of waste relocated to landfills by recovering materials and components from returned, or End-Of-Life products and reuse them to build a remanufactured product, and/ or novel components. With the rapid growth of interest in remanufactured products' market, offering warranty for remanufactured products and components is becoming a necessity for remanufacturer in order to meet customers' requirement and as a marketing mechanism. During that process, maintenance policies are of great importance in order to reduce the warranty cost on the remanufacturer. In this paper, an optimization simulation model for remanufactured items sold with one-dimensional non-renewing money-back guarantee (MBG) warranty policy is proposed from the view of remanufacturer, in which, an End-Of-Life product is subjected to upgrade action at the end of its past life and during the warranty period, preventive maintenance actions are carried out when the remaining life of the product reaches a prespecified value so that the remanufacturer's expected profit can be maximized. Finally, a numerical example and design of experiment analysis are provided to demonstrate the proposed approach.

Will Guarantee, Guarantee Companies a Door to Door Sale?

“…Abduh (2021), stated in their research about a different type of guarantee which is halal ingredients guarantee if not observed can severe the relationship of consumers forever and may anger the consumers to get lawsuits as well. Guarantee are of two types conditional and non conditional (Alqahtani & Gupta, 2018). Guarantees play a vital role in creating trust for the consumers and they work for the firms and consumers both to find a common ground.…”

Impact of warranty and green level of the product with nonlinear demand via optimal control theory and Artificial Hummingbird Algorithm

“…Chen et al 24 studied the impact of warranty and production periods with price-sensitive periods of warranty in a defective production system. Alqahtani and Gupta 25 considered money-back guarantee and warranty policies in the sensor-embedded remanufacturing model under the strategy of preventive maintenance. Taleizadeh et al 26 solved a return and warranty policy-based production problem with imperfect production and product quality control with Hybrid NSGA-II.…”

Cost Optimization of Two-Dimensional Warranty Products under Preventive Maintenance

“…Under the premise of controlling the total profit of the manufacturer, the impact of the number of preventive maintenance on the length of the extended warranty period was studied [9]. Alqahtani considered the optimization of warranty cost from the perspective of the manufacturer, adopts a warranty strategy for periodic preventive maintenance of recycled products, and establishes a warranty cost model [10]. Zhou proposed to divide the warranty period into multiple stages and perform different periods of preventive maintenance in different stages.…”