Determination of Bayesian optimal warranty length under Type-II unified hybrid censoring scheme. Issue 1 (2nd January 2022)

• Record Type: Journal Article
• Authors: Sen, Tanmay; Bhattacharya, Ritwik; Pradhan, Biswabrata; Tripathi, Yogesh Mani
• Is Part Of: Quality technology & quantitative management. Volume 19:Issue 1(2022)
• Page Start: 35
• Page End: 49
• Publication Date: 2022-01-02
• Subjects: FRW-prw policy -- log-normal distribution -- prior distribution -- optimal warranty length; Quality control -- Periodicals; Quality control -- Statistical methods -- Periodicals; Industrial management -- Periodicals; Industrial management; Management -- Research -- Methodology -- Periodicals; Qualitative research -- Periodicals; Management; Quality control; Quality control -- Statistical methods; Periodicals; 658.00721
• DOI: 10.1080/16843703.2021.1981530
• Languages: English
• ISSNs: 1684-3703

Abstract

ABSTRACT: We consider determination of optimal warranty length for the combined free replacement and pro-rata warranty (FRW-PRW) policy based on the Type-II unified hybrid censored data by Bayesian approach. A non-linear pro-rata rebate cost function is proposed based on which warranty cost is computed. It is assumed that the lifetime follows log normal distribution. The optimal warranty length is obtained by maximizing an expected utility function consisting of three cost functions such as economic benefit function, warranty cost function and dissatisfaction cost function. The expectation is taken with respect to the posterior predictive model for the time-to-failure data. It is observed that the non-linear pro-rata rebate cost function gives a larger warranty length with maximum profit as compared to linear pro-rata rebate cost function. A real-data set is analyzed in order to illustrate the proposed methodology of finding optimal warranty length.