Skip to main content
Article thumbnail
Location of Repository

Optimising age-replacement and extended non-renewing warranty policies in lifecycle costing

By Shaomin Wu and Philip J. Longhurst


This paper analyses the life cycle cost of equipment protected by both base and extended warranty policies from a consumer's perspective. We assume that the equipment has two types of failure: minor and catastrophic. A minor failure can be corrected with minimal repair whereas a catastrophic failure can only be removed by a replacement. It is assumed that equipment is maintained at no charge to the consumer during the warranty period, whereas the consumer is fully charged for any maintenance on failures after the extended warranty expires. We formulate the expected life cycle cost of the equipment under a general failure time distribution, and then for special cases we prove that the optimal replacement and extended warranty policies exists where the expected life cycle cost per unit time is minimised. This is examined with numerical examples. & 2011 Elsevier B.V. All rights reserved

Publisher: Elsevier Science B.V., Amsterdam.
Year: 2011
DOI identifier: 10.1016/j.ijpe.2011.01.007
OAI identifier:
Provided by: Cranfield CERES

Suggested articles


  1. (2007). A exible extended warranty and related optimal strategies. doi
  2. (2009). A repairreplace strategy based on usage rate for items sold with a two-dimensional warranty. doi
  3. (2002). A survey of maintenance policies of deteriorating systems. doi
  4. (1985). Age-dependent minimal repair. doi
  5. (2008). Green-component life-cycle value on design and reverse manufacturing in semi-closed supply chain. doi
  6. (2008). Integrating environmental consciousness in product/process development based on lifecycle thinking. doi
  7. (2010). Life cycle inventory policy characterizations for a single-product recoverable system. doi
  8. (2010). Linear and nonlinear preventive maintenance models. doi
  9. (2008). Minimizing life cycle cost by managing product reliability via validation plan and warranty return cost. doi
  10. (2002). New product warranty: A literature review. doi
  11. (1989). On the solution of renewal-type integral equations. doi
  12. (2010). Optimal age for preventive replacement under a combined fully renewable free replacement with a pro-rata war16ranty. doi
  13. (2001). Optimal design of series-parallel systems considering maintenance and salvage value. doi
  14. (2005). Preventive maintenance models with random maintenance quality. doi
  15. (1997). Reliability of systems, equipment and components{part 23: Guide to life cycle costing, doi
  16. (2007). Renewing warranty and preventive maintenance for products with failure penalty post-warranty. doi
  17. (2008). Warranty cost analysis for nonrepairable services products. doi
  18. (2007). Warranty cost analysis for products with 17a dormant state. doi
  19. (1994). Warranty Cost Analysis. doi
  20. (2008). Warranty servicing with imperfect repair. doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.