Warranty cost analysis of a two-component system, with stochastic dependence
Résumé
This paper analyses the expected warranty costs from the perspectives of the manufacturer and the consumer respectively. Both the non-renewing free replacement policy and the renewing replacement policy are examined regarding a two-component in series system with failure interaction between components. Our primary objective is to provide explicit expressions of the warranty costs allocations between the manufacturer and the consumer by taking into account the product service time. Numerical examples are given to demonstrate the applicability of the methodology. It is shown that, independent of the type of the warranty policy, the failure interaction between components has impact on the manufacturer profits and the consumer costs.
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