Stochastic cost modeling for second-hand products' optimum warranty period and upgrade level
After the second-hand products return to the second-hand markets, either goods, parts, or materials are reused or disposed. For optimum sales, these products are under the process of determining the optimal warranty period and warranty policy, so that both the seller's profit and the consumer&#...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Ayandegan Institute of Higher Education, Iran
2021-06-01
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| Series: | Journal of Applied Research on Industrial Engineering |
| Subjects: | |
| Online Access: | http://www.journal-aprie.com/article_128411_809671b1be0290322133d14bf2610d5e.pdf |
| _version_ | 1818016862014799872 |
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| author | Maryam Dehghanbaghi Azadeh Dabbaghi |
| author_facet | Maryam Dehghanbaghi Azadeh Dabbaghi |
| author_sort | Maryam Dehghanbaghi |
| collection | DOAJ |
| description | After the second-hand products return to the second-hand markets, either goods, parts, or materials are reused or disposed. For optimum sales, these products are under the process of determining the optimal warranty period and warranty policy, so that both the seller's profit and the consumer's profit are met. Therefore, estimating the warranty costs for future claims on second-hand products is very necessary. In this paper, a hybrid stochastic model is presented to improve the reliability of second-hand products under the free repair replacement warranty policy to determine the level of upgrade, with the aim of reducing warranty costs. Using the upgrade actions, the model, based on three approaches, minimal-perfect repair, virtual age, and improvement factor, is developed for estimating the warranty costs of second-hand products. The contribution of this research is the application of three upgrade approaches in the warranty cost model simultaneously to estimate the warranty costs and optimum upgrade level more realistic. Finally, under different product lifetime, a numerical example and sensitivity analysis are provided. Evaluation is presented in four lifetimes for second-hand products ranging from one to four years for which the optimum upgrade level and the warranty period are determined. The results show that the higher the level of second-hand product upgrades to a certain extent, the higher the savings, but the more upgrades are not cost-effective for second-hand products. |
| first_indexed | 2024-04-14T07:18:11Z |
| format | Article |
| id | doaj.art-ba645a79194f4d9697a0e4e374d673a6 |
| institution | Directory Open Access Journal |
| issn | 2538-5100 2676-6167 |
| language | English |
| last_indexed | 2024-04-14T07:18:11Z |
| publishDate | 2021-06-01 |
| publisher | Ayandegan Institute of Higher Education, Iran |
| record_format | Article |
| series | Journal of Applied Research on Industrial Engineering |
| spelling | doaj.art-ba645a79194f4d9697a0e4e374d673a62022-12-22T02:06:15ZengAyandegan Institute of Higher Education, IranJournal of Applied Research on Industrial Engineering2538-51002676-61672021-06-018211612810.22105/jarie.2021.254706.1205128411Stochastic cost modeling for second-hand products' optimum warranty period and upgrade levelMaryam Dehghanbaghi0Azadeh Dabbaghi1Department of Industrial Engineering, Robat karim Branch, Islamic Azad University, Tehran Iran.Research Institute of Petroleum Industry, Tehran, Iran.After the second-hand products return to the second-hand markets, either goods, parts, or materials are reused or disposed. For optimum sales, these products are under the process of determining the optimal warranty period and warranty policy, so that both the seller's profit and the consumer's profit are met. Therefore, estimating the warranty costs for future claims on second-hand products is very necessary. In this paper, a hybrid stochastic model is presented to improve the reliability of second-hand products under the free repair replacement warranty policy to determine the level of upgrade, with the aim of reducing warranty costs. Using the upgrade actions, the model, based on three approaches, minimal-perfect repair, virtual age, and improvement factor, is developed for estimating the warranty costs of second-hand products. The contribution of this research is the application of three upgrade approaches in the warranty cost model simultaneously to estimate the warranty costs and optimum upgrade level more realistic. Finally, under different product lifetime, a numerical example and sensitivity analysis are provided. Evaluation is presented in four lifetimes for second-hand products ranging from one to four years for which the optimum upgrade level and the warranty period are determined. The results show that the higher the level of second-hand product upgrades to a certain extent, the higher the savings, but the more upgrades are not cost-effective for second-hand products.http://www.journal-aprie.com/article_128411_809671b1be0290322133d14bf2610d5e.pdfwarrantysecond-hand productwarranty costsstochastic modelingupgrade |
| spellingShingle | Maryam Dehghanbaghi Azadeh Dabbaghi Stochastic cost modeling for second-hand products' optimum warranty period and upgrade level Journal of Applied Research on Industrial Engineering warranty second-hand product warranty costs stochastic modeling upgrade |
| title | Stochastic cost modeling for second-hand products' optimum warranty period and upgrade level |
| title_full | Stochastic cost modeling for second-hand products' optimum warranty period and upgrade level |
| title_fullStr | Stochastic cost modeling for second-hand products' optimum warranty period and upgrade level |
| title_full_unstemmed | Stochastic cost modeling for second-hand products' optimum warranty period and upgrade level |
| title_short | Stochastic cost modeling for second-hand products' optimum warranty period and upgrade level |
| title_sort | stochastic cost modeling for second hand products optimum warranty period and upgrade level |
| topic | warranty second-hand product warranty costs stochastic modeling upgrade |
| url | http://www.journal-aprie.com/article_128411_809671b1be0290322133d14bf2610d5e.pdf |
| work_keys_str_mv | AT maryamdehghanbaghi stochasticcostmodelingforsecondhandproductsoptimumwarrantyperiodandupgradelevel AT azadehdabbaghi stochasticcostmodelingforsecondhandproductsoptimumwarrantyperiodandupgradelevel |