Life Cycle Reliability and Safety Engineering

, Volume 8, Issue 4, pp 303–314 | Cite as

Software for warranty optimization

  • Mohd VaseemEmail author
  • Makarand S. Kulkarni
Original Research


The research article is associated with warranty optimization. Warranty is one of the most important factors for each organization because it accounts for a large profit in the organizations. In the past research articles, the models developed are only for specific problems of warranty optimization. In this research, a generic model is developed that can be applied to any system for calculating the optimal alternatives, optimal types of warranty policy and optimal warranty durations for various components within a system. The constraints considered in the past by the researches are either related to customer’s criteria or related to manufacturer’s criteria. For the first time, this research article is able to provide solution for warranty optimization considering both the criteria as major constraints together. In this research article, an optimized model of warranty is developed. The model is made in the form of software (OptiW) for easy implementation for the users. This software can be applied to any system having various components like Weibull distribution or exponential distribution. This software can determine the type of warranty policies, type of alternatives used and optimum warranty duration period for various components within a system. In this model, life cycle cost is a non-linear objective function of minimization type subjected to two constraints. The constrains are mean time between failure (MTBF) taking into account the customer’s perspective and spare parts cost taking into account the manufacturers’ perspective. First, the numbers of failures for various warranty plans are simulated using inverse function of the cdf of Weibull distribution. The results of the simulation were required in the optimization model. Genetic algorithm is used to solve non-linear optimization model in the MATLAB. Graphical user interface is developed using guide tool in MATLAB. The software exe file is developed using deploy tool to make this software applicable to any window. Using this software OptiW, an engine problem having 29 components as a case study is solved. The results obtained from the OptiW have reduced life cycle cost as compared to existing model of warranty. The optimum warranty duration for 29 components was larger as compared to various existing warranty models. For the future scope, this research paper can be useful for other extended warranty models or for further research.


Genetic algorithm GUI Life cycle cost MATLAB MTBF Reliability Software Warranty 


Supplementary material

41872_2019_88_MOESM1_ESM.pdf (694 kb)
Supplementary material 1 (PDF 693 kb)
41872_2019_88_MOESM2_ESM.pdf (86 kb)
Supplementary material 2 (PDF 85 kb)


  1. Aggrawal D, Anand A, Singh O, Singh J (2014) Profit maximization by virtue of price & warranty length optimization. J High Technol Manag Res 25(1):1–8CrossRefGoogle Scholar
  2. Ambad PM, Kulkarni MS (2013) A methodology for design for warranty with focus on reliability and warranty policies. J Adv Manag Res 10(1):139–155CrossRefGoogle Scholar
  3. Baik J, Murthy DNP, Jack N (2004) Two-dimensional failure modeling with minimal repair. Nav Res Logist (NRL) 51(3):345–362MathSciNetCrossRefGoogle Scholar
  4. Blischke WR, Murthy DNP (1992) Product warranty management—I: a taxonomy for warranty policies. Eur J Oper Res 62(2):127–148CrossRefGoogle Scholar
  5. Chukova S, Shafiee M (2013) One-dimensional warranty cost analysis for second-hand items: an overview. Int J Qual Reliab Manag 30(3):239–255CrossRefGoogle Scholar
  6. Chukova SS, Dimitrov BN, Rykov VV (1993) Warranty analysis (review). J Sov Math 67(6):3486–3508MathSciNetCrossRefGoogle Scholar
  7. Jager P, Bertsche B (2004) A new approach to gathering failure behavior information about mechanical components based on expert knowledge. In: Annual symposium reliability and maintainability, 2004-RAMS. IEEE, pp 90–95Google Scholar
  8. Jung GM, Park DH (2003) Optimal maintenance policies during the post-warranty period. Reliab Eng Syst Saf 82(2):173–185CrossRefGoogle Scholar
  9. Karim R, Suzuki K (2005) Analysis of warranty claim data: a literature review. Int J Qual Reliab Manag 22(7):667–686CrossRefGoogle Scholar
  10. Lad BK, Kulkarni MS (2008) Integrated reliability and optimal maintenance schedule design: a life cycle cost based approach. Int J Product Lifecycle Manag 3(1):78–90CrossRefGoogle Scholar
  11. Lad BK, Kulkarni MS (2010) A parameter estimation method for machine tool reliability analysis using expert judgement. Int J Data Anal Techn Strateg 2(2):155–169CrossRefGoogle Scholar
  12. Majid HA, Kasim NH, Samah AA (2013) Optimization of warranty cost using genetic algorithm: a case study in fleet vehicle. Int J Soft Comput Eng 3(4):199–202Google Scholar
  13. Murthy DNP, Blischke WR (1992a) Product warranty management—II: an integrated framework for study. Eur J Oper Res 62(3):261–281CrossRefGoogle Scholar
  14. Murthy DNP, Blischke WR (1992b) Product warranty management—III: a review of mathematical models. Eur J Oper Res 63(1):1–34CrossRefGoogle Scholar
  15. Murthy DNP, Djamaludin I (2002) New product warranty: a literature review. Int J Prod Econ 79(3):231–260CrossRefGoogle Scholar
  16. Nguyen DG, Murthy DNP (1989) Optimal replace-repair strategy for servicing products sold with warranty. Eur J Oper Res 39(2):206–212MathSciNetCrossRefGoogle Scholar
  17. Park M, Pham H (2012) Warranty Cost Analysis for k-out-of-n systems with 2-D warranty. IEEE Trans Syst Man Cybern Part A Syst Hum 42(4):947–957CrossRefGoogle Scholar
  18. Roozitalab A, Asgharizadeh E (2013) Optimizing the warranty period by cuckoo meta-heuristic algorithm in heterogeneous customers’ population. J Ind Eng Int 9(1):27CrossRefGoogle Scholar
  19. Singpurwalla ND, Wilson S (1993) The warranty problem: its statistical and game-theoretic aspects. SIAM Rev 35(1):17–42MathSciNetCrossRefGoogle Scholar
  20. Taleizadeh AA, Hadadpour S, Cárdenas-Barrón LE, Shaikh AA (2017) Warranty and price optimization in a competitive duopoly supply chain with parallel importation. Int J Prod Econ 185:76–88CrossRefGoogle Scholar
  21. Wu S, Akbarov A (2012) Forecasting warranty claims for recently launched products. Reliab Eng Syst Saf 106:160–164CrossRefGoogle Scholar

Copyright information

© Society for Reliability and Safety (SRESA) 2019

Authors and Affiliations

  1. 1.M.B.M Engineering College Jodhpur, Under TEQIP III sponsered by World BankJodhpurIndia
  2. 2.TEQIP 3, MHRD Sponsored by World BankWashington DCUSA
  3. 3.IIT BombayMumbaiIndia

Personalised recommendations