Study On Two-dimensional Extended Warranty Strategy Based On Preventive Maintenance

Nowadays the way of enterprises' competition is changing from the product price,quality and reliability to a multi-level competition in this rapidly changing market environment.As the competition intensifies,more and more enterprises prefer to provide extended warranty to obtain the competitive advantage.However,due to the recession of the product,the number of the products' failures will increase with the expansion of the warranty region,which will lead to a greater warranty service cost.During the extended warranty region,preventive maintenance is performed to reduce the possibility of product failure and improve the product reliability.How to integrate the product warranty with the repair strategy to control the warranty cost has become an important issue in the area of product warranty service.In this thesis,the study coverage is extended from base warranty to two-dimensional extended warranty,while corrective repair and preventive maintenance are integrated.Based on this,the optimal two-dimensional extended warranty strategy based on preventive maintenance has been studied.The preventive maintenance is implemented when the age of the product reaches a controlled-limit during the two-dimensional extended warranty.The effect of preventive maintenance can be measured by the reduction of the product's age.Meanwhile the failures during two successive preventive maintenance are minimally repaired.In this thesis,the two-dimensional extended warranty strategy considering the preventive maintenance has been studied from the enterprises' perspective.First of all,we give the research purpose and significance based on the summaries and analysis of up-to-date research of the product warranty strategy.Then the theories of product warranty,reliability and maintenance are described in detail,which establish the important theoretical foundation for the next study.Based on this,the two-dimensional extended warranty service cost model based on the preventive maintenance is established.In order to minimize the warranty service cost,we use mathematical methods to obtain the optimal number of preventive maintenance,control-limit and the reduction of the product's age.In the end,the numerical analysis is carried out and the results are compared with the minimal repair cost of service after failure.The result shows that the warranty service cost has been reduced significantly.According to the research,the enterprises should provide different warranty strategies based on the usage rate of different consumers to control the warranty service cost.