126 research outputs found

    Determination of optimal pricing and warranty policies

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    An important problem facing manufacturers in today\u27s competitive market is the determination of the selling price of a product and its warranty period. A longer warranty may serve as a signal of product reliability; however, it may also lead to an increase in cost and hence reduce the profit if the product reliability is low. A burn-in test may be used to improve the reliability of products prior to their shipment.;This research presented integrated models for maximizing the expected profit for products that are subjected to a burn-in test and sold with warranty. The burn-in time, warranty period, and price were chosen as three decision variables in these models. The price and warranty period were treated as marketing variables and a simple multiplicative form was used to model their effect on sales. Solution procedures were developed for several warranty policies. These procedures are applicable for any failure time distribution. Three failure time distributions were further investigated and formulas for optimal solutions were derived. Finally, two sets of data were used to illustrate the application of the models. Two computer programs were developed to solve the models both parametrically and nonparametically

    Optimal Burn-in Time and Imperfect Maintenance Strategy for a Warranted Product with Bathtub Shaped Failure Rate

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    ‘Burn-in/preventive maintenance’ programme is an efficient approach used to minimise the warranty servicing cost of a product with bathtub shaped failure rate. Burn-in is a widely used method to improve the quality of product during its ‘infant mortality’ period and preventive maintenance is a scheduled necessary activity carried out during its ‘wear-out’ period. In this paper, an optimisation model is developed to determine the optimal burn-in time and optimal imperfect preventive maintenance strategy that minimises the total mean servicing cost of a warranted product with an age-dependent repair cost. We provide a numerical study to illustrate our results

    Developing a Trade-off between Upgrade Action Time and Warranty Length for Second-hand Electrical Components

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    One way of improving the reliability and reducing the warranty servicing cost for second-hand items is through actions such as overhaul and upgrade which are carried out by the dealer or a third party. For second-hand electrical components, the improvement involves testing of items for a short time, called upgrade action time, before their release to the market. The items that fail during the test are scrapped or repaired; only items that survive the test are considered to be of good quality and released to the market. In this paper, a cost model is developed to achieve a trade-off between reducing the warranty servicing cost and increasing the upgrade action cost for a second-hand electrical component sold under various warranty policies

    Modeling and Analysis of Effective Ways for Improving the Reliability of Second-hand Products Sold with Warranty

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    Often, customers are uncertain about the performance and durability of the used/second-hand products. The warranties play an important role in reassuring the buyer. Offering the warranty implies that the dealer incurs additional costs to service any claims made by the customers. Reducing warranty costs is an issue of great interest to dealers. One way of improving the reliability and reducing the warranty servicing cost for second-hand items is through actions such as overhaul and upgrade which are carried out by the dealer or a third party. Improving actions allow the dealer to offer better warranty terms and to sell the item at a higher price. This paper deals with two effective approaches (virtual age approach and screening test approach) to decide on the reliability improvement strategies for second-hand products sold under various warranty policies (failure-free, rebate warranty, and a combination of free replacement and lump sum). A numerical example illustrates that from a dealer’s point of view, it is beneficial to carry out an improvement action only if the reduction in the warranty servicing cost is greater than the extra cost incurred due to this improvement action

    Joint Determination of Price and Upgrade Level for a Warranted Second-hand Product

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    An upgrade action is a pre-sale procedure that brings the second-hand item to an improved functional state and effectively reduces its age. This action is usually costly and adds directly to the sale price of the second-hand product, but it improves the product reliability and can reduce the warranty servicing cost. In the present paper, we propose a decision model to determine the optimal price and upgrade strategy of a warranted second-hand product to maximize the dealer's expected profit. The objective function includes both demand and cost functions, where purchase price from an end user, upgrade cost, and warranty cost are involved. We illustrate our finding using real data on second-hand electric device. Also, a sensitivity analysis is conducted to evaluate the effect of model parameters on the optimal solution

    Reliability Analysis of Nanocrystal Embedded High-k Nonvolatile Memories

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    The evolution of the MOSFET technology has been driven by the aggressive shrinkage of the device size to improve the device performance and to increase the circuit density. Currently, many research demonstrated that the continuous polycrystalline silicon film in the floating-gate dielectric could be replaced with nanocrystal (nc) embedded high-k thin film to minimize the charge loss due to the defective thin tunnel dielectric layer. This research deals with both the statistical aspect of reliability and electrical aspect of reliability characterization as well. In this study, the Zr-doped HfO2 (ZrHfO) high-k MOS capacitors, which separately contain the nanocrystalline zinc oxide (nc-ZnO), silicon (nc-Si), Indium Tin Oxide (nc-ITO) and ruthenium (nc-Ru) are studied on their memory properties, charge transportation mechanism, ramp-relax test, accelerated life tests, failure rate estimation and thermal effect on the above reliability properties. C-V hysteresis result show that the amount of charges trapped in nanocrystal embedded films is in the order of nc-ZnO\u3enc-Ru\u3enc-Si~nc-ITO, which might probably be influenced by the EOT of each sample. In addition, all the results show that the nc-ZnO embedded ZrHfO non-volatile memory capacitor has the best memory property and reliability. In this study, the optimal burn-in time for this kind of device has been also investigated with nonparametric Bayesian analysis. The results show the optimal burn-in period for nc-ZnO embedded high-k device is 5470s with the maximum one-year mission reliability

    Optimal Burn-In under Complex Failure Processes: Some New Perspectives

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    Ph.DDOCTOR OF PHILOSOPH

    Some contributions to modeling usage sensitive warranty servicing strategies and their analyses

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    Providing a warranty as a part of a product\u27s sale is a common practice in industry. Parameters of such warranties (e.g., its duration limits, intensity of use) must be carefully specified to ensure their financial viability. A great deal of effort has been accordingly devoted in attempts to reduce the costs of warranties via appropriately designed strategies to service them. many such strategies, that aim to reduce the total expected costs of the warrantor or / and are appealing in other ways such as being more pragmatic to implement - have been suggested in the literature. Design, analysis and optimization of such servicing strategies is thus a topic of great research interest in many fields. In this dissertation, several warranty servicing strategies in two-dimensional warranty regimes, typically defined by a rectangle in the age-usage plane, have been proposed, analyzed and numerically illustrated. Two different approaches of modeling such usage sensitive warranty strategies are considered in the spirit of Jack, Iskandar and Murthy (2009) and Iskandar (2005). An `Accelerated Failure Time\u27 (AFT) formulation is employed to model product degradation resulting due to excessive usage rate of consumers. The focus of this research is on the analysis of warranty costs borne by the manufacturer (or seller or third party warranty providers) subject to various factors such as product\u27s sale price, consumer\u27s usage rate, types and costs of repair actions. By taking into account the impact of the rate of use of an item on its lifetime, a central focus of our research is on warranty cost models that are sensitive to the usage rate. Specifically, except the model in Chapter 4 where the rate at which an item is used is considered to be a random variable; all other warranty servicing policies that we consider, have usage rate as a fixed parameter, and hence are policies conditional on the rate of use. Such an approach allows us to examine the impact of a consumer\u27s usage rate on the expected warranty costs. For the purpose of designing warranties, exploring such sensitivity analysis may in fact suggest putting an upper limit on the rate of use within the warranty contract, as for example in case of new or leased vehicle warranties. A Bayesian approach of modeling 2-D Pro-rated warranty (PRW) with preventive maintenance is considered and explored in the spirit of Huang and Fang (2008). A decision regarding the optimal PRW proportion (paid by the manufacturer to repair failed item) and optimal warranty period that maximizes the expected profit of the rm under different usage rates of the consumers is explored in this research. A Bayesian updating process used in this context combines expert opinions with market data to improve the accuracy of the parameter estimates. The expected profit model investigated here captures the impact of juggling decision variables of 2-D pro-rated warranty and investigates the sensitivity of the total expected profit to the extent of mis-specification in prior information

    Stochastically ordered subpopulations and optimal burn-in procedure

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    Burn-in is a widely used engineering method which is adopted to eliminate defective items before they are shipped to customers or put into the field operation. In the studies of burn-in, the assumption of bathtub shaped failure rate function is usually employed and optimal burn-in procedures are investigated. In this paper, however, we assume that the population is composed of two ordered subpopulations and optimal burn-in procedures are studied in this context. Two types of risks are defined and an optimal burn-in procedure, which minimizes the weighted risks is studied. The joint optimal solutions for the optimal burn-in procedure, which minimizes the mean number of repairs during the field operation, are also investigated.
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