| Title | OPTIMIZATION WITH BATHTUB FAILURE RATE AND DISCOUNTED PURCHASING COST |
| Publication Type | Journal Article |
| Year of Publication | 2005 |
| Authors | Sheu, S-H, Yu, S-L |
| Volume | 9 |
| Issue | 3 |
| Start Page | 369 |
| Pagination | 12 |
| Date Published | 2005 |
| ISSN | 1083-2564 |
| AMS | 90B25 |
| Abstract | An optimal age-replacement policy under renewing free-replacement warranty for non-repairable products is considered. Upon failure, it incurs a downtime. Such downtime cost can have a significant impact on users’ profits/safety. The users will have to decide when to replace the product. Taking product warranty into account, different decisions will have different cost implications to users. For products with a bathtub failure rate function, and considering a discounted purchasing cost, we derive the expressions for the long-run expected cost rate. Then the optimal age-replacement policy is obtained. It shows that the optimal replacement age should be adjusted toward the warranty period when a product is warranted. |
| URL | http://www.acadsol.eu/en/articles/9/3/7.pdf |
| Refereed Designation | Refereed |
| Full Text | REFERENCES |