• Title/Summary/Keyword: Replacement Policy

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Dual Monopolies of New Durables and Their Ancillaries: Exclusive Supply Contracts

  • Flath, David
    • Asian Journal of Innovation and Policy
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    • v.7 no.1
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    • pp.207-234
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    • 2018
  • A manufacturer of a durable good typically purchases supplies, including parts for assembly - that are also useful for repairs - from independent "original equipment suppliers" with which it contracts. The manufacturer is a branded monopolist of its final assembled product. To put into effect also a monopoly of the replacement parts, it must stipulate in its arrangements with independent suppliers of the parts that they not supply such patented parts to any other buyer. Durable good owners would then only be able to obtain their requirements of replacement parts from the same company that supplied the durable. This would amount to a tie-in of replacement parts to the direct purchase of new durables. And that describes the apparently widespread practice of automobile manufacturers in India, as exposed in a recent case before the Competition Commission of India (Samsher Kataria v Honda Siel Cars India Limited and others). Here, I will argue that such tie-in enabled automotive manufacturers to more fully appropriate consumer surplus, which induced them to lower the price of new cars, sell more cars and also sell more repair parts. The tie-in expanded the auto parts industry and promoted new entry. The main restraint on expansion of India's automotive manufacturing is not monopoly. It is government protection in the form of tariffs on automobiles and auto parts.

Optimal Working Cycles for Minimal Repair Policy (정기교체 및 최소수리를 고려한 작업주기 횟수 최적화)

  • Lee, Jinpyo
    • Journal of Korean Society for Quality Management
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    • v.48 no.1
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    • pp.201-214
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    • 2020
  • Purpose: The purpose of this paper is to determine an optimal number of cycle times for the replacement under the circumstance where the system is replaced at the periodic time and the multiple number of working cycles whichever occurs first and the system is minimally repaired between the replacements if it fails. Methods: The system is replaced at periodic time () or cycle time, whichever occurs first, and is repaired minimally when it fails between successive replacements. To determine the optimal number of cycle times, the expected total cost rate is optimized with respect to the number of cycle times, where the expected total cost rate is defined as the ratio of the expected total cost between replacements to the expected time between replacements. Results: In this paper, we conduct a sensitivity analysis to find the following results. First, when the expected number of failures per unit time increases, the optimal number of cycle times decreases. Second, when the periodic time for replacement becomes longer, the optimal number of cycle times decreases. Third, when the expected value for exponential distribution of the cycle time increases, the optimal number of cycle times increases. Conclusion: A mathematical model is suggested to find the optimal number of cycle times and numerical examples are provided through the sensitivity analysis on the model parameters to see the patterns for changes of the optimal number of cycle times.

Preventive maintenance model following the expiration of NFRRW (비재생무료교체-수리보증이 종료된 이후의 예방보전모형)

  • Jung, Ki-Mun
    • Journal of the Korean Data and Information Science Society
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    • v.22 no.4
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    • pp.775-784
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    • 2011
  • In this paper, we consider the periodic preventive maintenance model for repairable system following the expiration of non-renewing free replacement-repair warranty (NFRRW). Under this preventive maintenance model, we derive the expressions for the expected cycle length, the expected total cost and the expected cost rate per unit time. Also, we determine the optimal preventive maintenance period and the optimal preventive maintenance number by minimizing the expected cost rate per unit time. Finally, the optimal periodic preventive maintenance policy is given for Weibull distribution case.

Burn-in When Repair Costs Vary With Time

  • Na, Myung-Hwan;Lee, Sangyeol
    • Journal of Korean Society for Quality Management
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    • v.31 no.1
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    • pp.142-147
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    • 2003
  • Burn-in is a widely used method to eliminate the initial failures. Preventive maintenance policy such as block replacement with minimal repair at failure is often used in field operation. In this, paper burn-in and maintenance policy are taken into consideration at the same time. The cost of a minimal repair is assumed to be a non-decreasing function of its age. The problems of determining optimal burn-in times and optimal maintenance policy are considered.

Ordering Policy for Planned Maintenance with Salvage Value

  • Park, Young T.;Jing, Sun
    • International Journal of Quality Innovation
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    • v.7 no.3
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    • pp.15-23
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    • 2006
  • A spare ordering policy is considered for planned maintenance. Introducing the ordering, uptime, downtime, inventory costs and salvage value, we derive the expected cost effectiveness. The problem is to determine jointly the ordering time for a spare and the preventive replacement time for the operating unit which maximize the expected cost effectiveness. Some properties regarding the optimal policy are derived, and a numerical example is included to explain the proposed model.

Burn-in When Minimal Repair Costs Vary With Time

  • Na, Myung-Hwan;Lee, Sang-Yeol
    • Proceedings of the Korean Statistical Society Conference
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    • 2002.11a
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    • pp.147-151
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    • 2002
  • Burn-in is a widely used method to eliminate initial failures. Preventive maintenance policy such as block replacement with minimal repair at failure is often used in field operation. In this paper burn-in and maintenance policy are taken into consideration at the same time. The cost of a minimal repair is assumed to be a non-decreasing function of its age. The problems of determining optimal burn-in times and optimal maintenance policy are considered.

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Optimal Age Replacement Policy of Multi-Component System (다부품시스템의 최적수명교환방침)

  • 정영배
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.11 no.18
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    • pp.35-39
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    • 1988
  • In general, the characteristics of components which consist of multi component system can not be the same. This paper proposes a maintenance model of multi-component system according to the characteristics of each component. In this paper multi-component system is divided into three components-critical component, major component and minor component, respectively. Then we determine the optimal age replacement time of the system which minimizes total maintenance cost. Numerical examples are shown to illustrate the result.

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A Cooperative Proxy Caching for Continuous Media Services in Mobile Environments (이동환경에서 연속미디어 서비스를 위한 협력적인 프록시 캐슁)

  • Lee Seung-Won;Lee Hwa-Sei;Park Seong-Ho;Chung Ki-Dong
    • The KIPS Transactions:PartB
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    • v.11B no.6
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    • pp.691-700
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    • 2004
  • This paper proposes a user's mobility based cooperative proxy caching policy for effective resource management of continuous media objects in mobile environments. This policy is different from the existing proxy caching policies in terms of how to exploit users' mobility. In other words, existing caching policies work based on the information about objects by referring to user's requests within a specified domain whereas the proposed caching policy runs by utilizing a number of user's requests across several domains. So, the proposed policy is applicable to random requests in mobile environments Moreover, we also propose a replacement policy based on weights and playback time. To check the efficiency of the proposed caching policy, the proposed replacement policy is run with different size of caching unit object or segment. The result of performance analyze tells what a ratio of user's mobility is are major factors for the efficient operation of the cooperative caching.

Replacement Policies Based on System Age and Random Repair Cost under Imperfect Repair

  • Yun, Won Young
    • Journal of Korean Society for Quality Management
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    • v.18 no.2
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    • pp.1-8
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    • 1990
  • Replacement policies based on both the system age and the random repair cost are studied. The system is replaced when it reaches age T (Policy A), or when it fails for the first time after age T (Policy B). If the system fails before age T, the repair cost is estimated and repair is then undertaken if the estimated cost is less than a predetermined limit L ; otherwise, the system is replaced. After repair, the system is as good as new with probability (1-p) or is as good as old with probability P. The expected cost rate is obtained, its behavior is examined, and way of obtaining optimal T and L is explored.

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Cost Limit Replacement Policy under Imperfect Repair with Inspection Error (검사오차가 있는 불완전 수리에서의 비용한계 교체 정책)

  • Yun, Won-Young
    • Journal of Korean Institute of Industrial Engineers
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    • v.16 no.2
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    • pp.45-50
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    • 1990
  • A replacement policy with repair cost limit is discussed. When a system fails, the repair cost is estimated by inspection and repair is then undertaken if the estimated cost is less than a predetermined limit L ; otherwise the system is replaced. After repair, the system is as good as new with probability(l-p) or is minimally repaired with probability p. It is assumed that repair cost can not be estimated exactly because of inspection error. When the failure time follows a Weibull distribution and repair cost a normal distribution, the value of repair cost limit minimizing the expected cost rate is shown to be finite and unique.

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