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Title: Optimal burn-in for repairable products sold with a two-dimensional warranty
Authors: Ye, Z.-S.
Murthy, D.N.P.
Xie, M. 
Tang, L.-C. 
Keywords: Burn-in
cost analysis
two-dimensional warranty
Issue Date: 1-Feb-2013
Citation: Ye, Z.-S., Murthy, D.N.P., Xie, M., Tang, L.-C. (2013-02-01). Optimal burn-in for repairable products sold with a two-dimensional warranty. IIE Transactions (Institute of Industrial Engineers) 45 (2) : 164-176. ScholarBank@NUS Repository.
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.
Source Title: IIE Transactions (Institute of Industrial Engineers)
ISSN: 0740817X
DOI: 10.1080/0740817X.2012.677573
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