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On the investment in a reliability improvement program for warranted second-hand items

Shafiee, M ; Sharif University of Technology | 2011

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  1. Type of Document: Article
  2. DOI: 10.1080/0740817X.2010.540638
  3. Publisher: 2011
  4. Abstract:
  5. A reliability improvement program (such as an upgrade action) can be seen as an investment by a dealer to restore a second-hand product to a better operational state. Due to the nature of the actions performed, the item's reliability at the end of this program is usually uncertain. This article develops a stochastic cost-benefit model for investment made in reliability improvement programs for second-hand items sold with failure-free warranty. Depending on the product's lifetime modeling approach, two modifications of the model are considered and are solved for the optimal improvement level. A real case application of the model is presented to validate the proposed approach
  6. Keywords:
  7. Cost models ; Failure-free warranty ; Second-hand product ; Uncertain reliability improvement ; Upgrade action ; Investments ; Stochastic models ; Reliability
  8. Source: IIE Transactions (Institute of Industrial Engineers) ; Volume 43, Issue 7 , Mar , 2011 , Pages 525-534 ; 0740817X (ISSN)
  9. URL: http://www.tandfonline.com/doi/abs/10.1080/0740817X.2010.540638