Evaluation of the warranty cost of a product with type III stochastic dependence between components

Nan Zhang (1) , Mitra Fouladirad (1) , Anne Barros (2)

1 LM2S - Laboratoire Modélisation et Sûreté des Systèmes
2 NTNU - Norwegian University of Science and Technology [Trondheim]

This paper analyses the expected warranty costs from the perspectives of the manufacturer and the consumer respectively. Both the non-renewing free replacement policy and the renewing replacement policy are examined regarding a two-component series system with stochastic dependence between components. It is assumed that whenever component 1 fails, a random damage to component 2 is induced whereas a component 2 failure causes the failure of component 1. Component 2 fails when its total damage exceeds a predetermined level L. By considering the consumer's behavior the product service time, the warranty costs allocations between the manufacturer and the consumer are presented. Numerical and Monte Carlo examples are given to demonstrate the applicability of the methodology. It is shown that, independent of the type of the warranty policy, the failure interaction between components has impact on the manufacturer profits and the consumer costs. The initial warranty length has impact on the product quality preferences to both the consumer and the manufacturer.

Mots clés: Free replacement warranty; Two-component systems; Failure interaction; Virtual age; Imperfect repair

Domaines: Sciences de l'ingénieur [physics]; Statistiques [stat]

Nan Zhang, Mitra Fouladirad, Anne Barros. Evaluation of the warranty cost of a product with type III stochastic dependence between components. Applied Mathematical Modelling, 2018, 59, pp.39-53. ⟨10.1016/j.apm.2018.01.013⟩. ⟨hal-02489057⟩