1REPAIRABLE PRODUCT WARRANTY AND PREVENTIVE MAINTENANCE POLICY

This paper considers four options of warranty and preventive maintenance policy. The product is repairable and sold with a non-renewing free warranty policy. For products sold with warranty, preventive maintenance (PM) actions by manufacturers and/or buyers have an impact on the total costs for both parties. In this study, we deal with a model to study the effect of PM that carried out by the manufacturer and/or buyer. During the warranty period, the failed product is repairable by the manufacturer and no cost to the buyer. Under the useful life of the product and during the out-of-warranty period, the failed one is also repairable by the manufacturer but the buyer will be incurred the repair cost. Under such a framework, cost analysis of four PM options are examined respectively from manufacturer and buyer perspectives. It shows that a significant cost saving is obtained by taking the optimal PM action