Optimal maintenance strategy for non-renewing replacement–repair warranty


Dong Ho Park, Department of Finance and Information Statistics, Hallym University, Chuncheon 200-702, Korea.

E-mail: dhpark@hallym.ac.kr


In this paper, we study the maintenance policy following the expiration of the non-renewing replacement–repair warranty (NRRW). For such purposes, we first define the non-renewing free replacement–repair warranty and the non-renewing pro rata replacement–repair warranty. Then the maintenance model following the expiration of the NRRW is discussed from the user's point of view. As the criterion to determine the optimal maintenance strategy, we formulate the expected cost rate per unit time from the user's perspective. All system maintenance costs incurred after the warranty is expired are paid by the user. Given the cost structures during the life cycle of the system, we determine the optimal maintenance period following the expiration of the NRRW. Finally, a few numerical examples are given for illustrative purposes. Copyright © 2012 John Wiley & Sons, Ltd.