Optimal burn-in for repairable products sold with a two-dimensional warranty

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

40 Scopus Citations
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Author(s)

  • Zhi-Sheng Ye
  • D.N. Pra Murthy
  • Min Xie
  • Loon-Ching Tang

Detail(s)

Original languageEnglish
Pages (from-to)164-176
Journal / PublicationIIE Transactions (Institute of Industrial Engineers)
Volume45
Issue number2
Publication statusPublished - 1 Feb 2013
Externally publishedYes

Abstract

Warranty data analyses reveal that products sold with two-dimensional warranties may have significant infant mortalities. To deal with this problem, this article proposes and studies a new burn-in modeling approach for repairable products sold with a two-dimensional warranty. More specifically, two types of failures are characterizedi.e., normal and defect failuresand performance and cost-based burn-in models are developed under the non-renewing free-repair warranty policy. The proposed models subsume the special cases of a one-dimensional warranty, allow different failure modes to have distinct accelerated relationships, and take consumer usage heterogeneity into consideration. Under mild assumptions, it is established that the optimal burn-in usage rate should be as high as possible, provided that no extraneous failure modes are introduced. Furthermore, It is shown that the optimal burn-in duration determined from the performance-based model is not shorter than that from the cost-based model. Numerical examples are used to demonstrate the benefits of burn-in. In addition, some practical implications from a sensitivity analysis are elaborated. © 2013 Copyright Taylor and Francis Group, LLC.

Research Area(s)

  • Burn-in, cost analysis, two-dimensional warranty