Optimal Maintenance Strategy for Second-hand Product Under Repair-replacement Policy  
Author Minjae Park

 
Co-Author(s) Ki Mun Jung; Dong Ho Park

 
Abstract In this study, we investigate the maintenance policy for a second-hand product to minimize total expected cost and to determine an optimal length of warranty period from manufacturer’s point of view. An optimal warranty policy is determined for a second-hand product using failure time and repair time to consider full-refund cost, minimal repair cost and preventive maintenance cost. If a failed product could not be repaired by a repair-time limit in the service center, a repair-limit risk-free service is conducted not continuing to provide a repair service. The repair-limit risk-free service which is full-refund service for a failed second-hand product is considered to minimize company’s loss and to increase customer’s satisfaction. The numerical application is implemented using the proposed approach and numerical examples are discussed to exemplify the applicability of the methodologies derived in this paper.

 
Keywords Failure time, Maintenance cycle, Manufacturer’s perspective, Repair-time threshold, Second-hand product, Total expected cost
   
    Article #:  23-088
 
Proceedings of the 23rd ISSAT International Conference on Reliability and Quality in Design
August 3-5, 2017 - Chicago, Illinois, U.S.A.