Scientia Iranica

Scientia Iranica

Bi-objective optimization of non-periodic preventive maintenance strategy by considering time value of money

Document Type : Research Article

Authors
A. Salmasnia 1
A. Shahidian 1
M. Seivandian 2
B. Abdzadeh 1
1 Department of Industrial Engineering, Faculty of Engineering, University of Qom, Qom, Iran
2 Department of Industrial Management, Faculty of Management, University of Tehran, Tehran, Iran
10.24200/sci.2019.51791.2365
Abstract
Recently, design of preventive maintenance (PM) policies during the warranty period has attracted the attention of researchers. The methods mainly design warranty servicing strategies in a way that reduce the cost imposed on the manufacturer without considering the impact of customer dissatisfaction. While dissatisfaction with a product is an important issue which may result in the loss of potential buyers and switching existing buyers to competitors. Therefore, this study develops a bi-objective model which simultaneously minimizes the manufacturer and the buyer cost under a Non-homogeneous Poisson Process framework. Also, a non-periodic preventive maintenance strategy is presented in which PM actions are performed at discrete time instants in a way that the expected number of failures remains a constant value over all PM intervals. Furthermore, it is a known fact that the value of money reduces over time due to different reasons and has a significant impact on long-term contracts. Since PMs and repairs are conducted at different times, the time value of money is considered to estimate the cost more accurately. A comparative study is conducted to support this claim that the presented non-periodic reliability-based PM policy has a better performance in comparison with a periodic PM policy.
Keywords
warranty
non-periodic preventive maintenance
time value of money
bi-objective optimization
Subjects

  1. References:

    1. Chen, C.-K., Lo, C.-C., and Weng, T.-C. Optimal production run length and warranty period for an imperfect production system under selling price dependent on warranty period", Eur. J. Oper. Res., 259(2), pp. 401{412 (2017).
    2. Tian, Z., Jia Y., Li, X., Van Doan, C., and Revhaug, I. Modelling upgrading maintenance policy in the onedimensional renewing warranty period", J. Shanghai Jiaotong Univ., 21(6), pp. 737{743 (2016).
    3. Taleizadeh, A.A., Khaligh, P.P., and Moon, I. Hybrid NSGA-II for an imperfect production system considering product quality and returns under two warranty policies", Appl. Soft Comput., 75, pp. 333{348 (2019).
    4. Mahmoudi, A. and Shavandi, H. Analyzing price, warranty length, and service capacity under a fuzzy environment: Genetic algorithm and fuzzy system", Sci. Iran., 20(3), pp. 975{982 (2013).
    5. Murthy, D.N.P. and Djamaludin, I. New product warranty: A literature review", Int. J. Prod. Econ., 79(3), pp. 231{260 (2002).
    6. Darghouth, M.N., Chelbi, A., and Ait-kadi, D. Investigating reliability improvement of second-hand production equipment considering warranty and preventive maintenance strategies", Int. J. Prod. Res., 55(16), pp. 4643{4661 (2017). 7. Faridimehr, S. and Niaki, S.T.A. Optimal strategies for price, warranty length, and production rate of a new product with learning production cost", Sci. Iran., Trans. E, Ind. Eng., 20(6), pp. 2247{2258 (2013). 8. Darghouth, M.N., A_t-Kadi, D., and Chelbi, A. Joint optimization of design, warranty and price for products sold with maintenance service contracts", Reliab. Eng. Syst. Saf., 165, pp. 197{208 (2017). 3320 A. Salmasnia et al./Scientia Iranica, Transactions E: Industrial Engineering 27 (2020) 3305{3321 9. Marshall, S., Arnold, R., Chukova, S., et al. Warranty cost analysis: Increasing warranty repair times", Appl. Stoch. Model. Bus. Ind., 34(4), pp. 544{561 (2018). 10. Wang, X. and Su, C. A two-dimensional preventive maintenance strategy for items sold with warranty", Int. J. Prod. Res., 54(19), pp. 5901{5915 (2016). 11. Murthy, D.N.P., Solem, O., and Roren, T. Product warranty logistics: Issues and challenges", Eur. J. Oper. Res., 156(1), pp. 110{126 (2004). 12. Murthy, D.N.P. Product warranty and reliability", Ann. Oper. Res., 143(1), pp. 133{146 (2006). 13. Djamaludin, I., Murthy, D.N.P., and Kim, C.S. Warranty and preventive maintenance", Int. J. Reliab. Qual. Saf. Eng., 8(02), pp. 89{107 (2001). 14. Kim, C.S. Djamaludin, I., and Murthy, D.N.P. Warranty and discrete preventive maintenance", Reliab. Eng. Syst. Saf., 84(3), pp. 301{309 (2004). 15. Sha_ee, M. and Chukova, S. Maintenance models in warranty: A literature review", Eur. J. Oper. Res., 229(3), pp. 561{572 (2013). 16. Wang, X. and Xie, W. Two-dimensional warranty: A literature review", Proc. Inst. Mech. Eng. Part O J. Risk Reliab., p. 1748006X17742776 (2017). 17. Wu, J., Xie, M., and Ng, T.S.A. On a general periodic preventive maintenance policy incorporating warranty contracts and system ageing losses", Int. J. Prod. Econ., 129(1), pp. 102{110 (2011). 18. Park, M., Jung, K.M., and Park, D.H. Optimal maintenance strategy under renewable warranty with repair time threshold", Appl. Math. Model., 43, pp. 498{508 (2017). 19. Su, C. and Wang, X. Optimizing upgrade level and preventive maintenance policy for second-hand products sold with warranty", Proc. Inst. Mech. Eng. Part O J. Risk Reliab., 228(5), pp. 518{528 (2014). 20. Huang, Y.-S., Huang, C.-D., and Ho, J.-W. A customized two-dimensional extended warranty with preventive maintenance", Eur. J. Oper. Res., 257(3), pp. 971{978 (2017). 21. Park, M. and Pham, H. Cost models for age replacement policies and block replacement policies under warranty", Appl. Math. Model., 40(9), pp. 5689{5702 (2016). 22. Bouguerra, S., Chelbi, A., and Rezg, N. A decision model for adopting an extended warranty under di_erent maintenance policies", Int. J. Prod. Econ., 135(2), pp. 840{849 (2012). 23. Salmasnia, A. and Yazdekhasti, A. A bi-objective model to optimize periodic preventive maintenance strategy during warranty period by considering customer satisfaction", Int. J. Syst. Assur. Eng. Manag., 8(4), pp. 770{781 (2017). 24. Teng, H.-M. Extended warranty pricing considering the time of money", J. Inf. Optim. Sci., 27(2), pp. 401{409 (2006). 25. Fang, C.-C. and Huang, Y.-S. A study on decisions of warranty, pricing, and production with insu_cient information", Comput. Ind. Eng., 59(2), pp. 241{250 (2010). 26. Shahanaghi, K., Noorossana, R., Jalali-Naini, S.G., and Heydari, M. Failure modeling and optimizing preventive maintenance strategy during two-dimensional extended warranty contracts", Eng. Fail. Anal., 28, pp. 90{102 (2013). 27. Ambad, P.M. and Kulkarni, M.S. A methodology for design for warranty with focus on reliability and warranty policies", J. Adv. Manag. Res., 10(1), pp. 139{155 (2013). 28. Su, C. and Wang, X. A study of availability-based warranty policy", in Industrial Engineering and Engineering Management (IEEM), 2016 IEEE International Conference on, pp. 1655{1659 (2016). 29. Moeini, A., Foumani, M., and Jenab, K. Utilisation of pruned Pareto-optimal solutions in the multi objective optimisation: an application to system redundancy allocation problems", Int. J. Appl. Decis. Sci., 6(1), pp. 50{65 (2013). 30. Moeini, A., Jenab, K., Mohammadi, M., and Foumani, M. Fitting the three-parameter Weibull distribution with cross entropy", Appl. Math. Model., 37(9), pp. 6354{6363 (2013). 31. Kijima, M. Some results for repairable systems with general repair", J. Appl. Probab., 26(01), pp. 89{102 (1989). 32. Salmasnia, A., Bashiri, M., and Salehi, M. A robust interactive approach to optimize correlated multiple responses", Int. J. Adv. Manuf. Technol., 67(5{8), pp. 1923{1935 (2013). 33. Roozitalab, A. and Asgharizadeh, E. Optimizing the warranty period by cuckoo meta-heuristic algorithm in heterogeneous customers' population", J. Ind. Eng. Int., 9(1), pp. 1{6 (2013). 34. Talbi, E.-G., Metaheuristics: From Design to Implementation, 74, John Wiley & Sons (2009). 35. Mahmoodian, V., Jabbarzadeh, A., and Rezazadeh, H. A novel intelligent particle swarm optimization algorithm for solving cell formation problem", Neural Comput. Appl., 31(2), pp. 801{815 (2017). 36. Bui, K.-T.T., Bui, D.T., Zou, J., et al. A novel hybrid arti_cial intelligent approach based on neural fuzzy inference model and particle swarm optimization for horizontal displacement modeling of hydropower dam", Neural Comput. Appl., 29(12), pp. 1495{1506 (2016). 37. Salmasnia, A., Abdzadeh, B., and Namdar, M. A joint design of production run length, maintenance policy and control chart with multiple assignable causes", J. Manuf. Syst., 42, pp. 44{56 (2017). 38. Kennedy, J. Particle swarm optimization", in Encyclopedia of Machine Learning, Springer, pp. 760{766 (2011).
Scientia Iranica
Volume 27, Issue 6 - Serial Number 6
Transactions on Industrial Engineering (E)
November and December 2020
Pages 3305-3321

  • Receive Date 15 September 2018
  • Revise Date 26 January 2019
  • Accept Date 22 April 2019