On Warranty Cost Analysis Using Alternating Phase Type Quasi-Renewal Processes

Abstract

This study investigates two warranty models: fixed and extended warranty models with inspections, for a repairable deteriorating system. An alternating phase type quasi-renewal process is employed to model the operating and repair times. Failures occur at random instants of time. The condition of the system after repair is not as good as new. While the fixed warranty model is examined using the expected cost rate and a bi-criterion cost, an explicit expression for the long-run average cost rate is obtained for the extended warranty model by adopting a [Formula: see text]-policy. In addition, the extended warranty model is examined to include the downtime cost in the analysis while avoiding inspections. Numerical illustrations provided therein conform to the observations made in the study.