A Two-dimensional Warranty Model with Consideration of Customer and Manufacturer Objectives Solved with Non-Dominated Sorting Genetic Algorithm

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ASADI AMIN; SAIDI MEHRABAD MOHAMMAD; Fathi Aghdam Faranak

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Paper Information

Journal: JOURNAL OF OPTIMIZATION IN INDUSTRIAL ENGINEERING (JOURNAL OF INDUSTRIAL ENGINEERING) Year:2019 | Volume:12 | Issue:1 (25) Page(s): 15-22

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Title

A Two-dimensional Warranty Model with Consideration of Customer and Manufacturer Objectives Solved with Non-Dominated Sorting Genetic Algorithm

Author(s)

ASADI AMIN | SAIDI MEHRABAD MOHAMMAD | Fathi Aghdam Faranak | Issue Writer Certificate

Keywords

Two dimensional warranty

Warranty cost

Utility function

Bi-objective model

NSGA-II.

Abstract

Warranty is a powerful implement for marketing strategy that is used by manufacturers and creates satisfaction for consumers by ensuring to compensate for incorrect operation of the product. Warranty service results in a cost named Warranty cost for a manufacturer. This cost is a function of warranty policy, regions, and product failures pattern. Since this service covers the cost of uncertain failure of the product, it makes some utility for customers. In this paper, we developed a novel customer Utility function that is used as a customer objective to be maximized. In addition to the manufacturer objective, minimizing the Warranty cost is considered simultaneously. There are four restrictions on warranty parameters such as time, usage, unit product price and the R&D expenditure to be considered. Finally, we will propose a novel Bi-objective model that maximizes the Utility function for customers and minimizes the Warranty cost for the manufacturer. This model will be solved with an evolutionary algorithm called Non-Dominated Sorting Genetic Algorithm (NSGA-II. and non-dominated Pareto solutions will be gained from this method. To give a numerical instance, for a certain usage rate’ s range of custumers, different warranties are provided and compared. It is believed that the computational results can help manufacturers to determine optimal solutions for the objective functions and consequently warranty parameters.

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APA: Copy

ASADI, AMIN, SAIDI MEHRABAD, MOHAMMAD, & Fathi Aghdam, Faranak. (2019). A Two-dimensional Warranty Model with Consideration of Customer and Manufacturer Objectives Solved with Non-Dominated Sorting Genetic Algorithm. JOURNAL OF OPTIMIZATION IN INDUSTRIAL ENGINEERING (JOURNAL OF INDUSTRIAL ENGINEERING), 12(1 (25)), 15-22. SID. https://sid.ir/paper/720892/en

Vancouver: Copy

ASADI AMIN, SAIDI MEHRABAD MOHAMMAD, Fathi Aghdam Faranak. A Two-dimensional Warranty Model with Consideration of Customer and Manufacturer Objectives Solved with Non-Dominated Sorting Genetic Algorithm. JOURNAL OF OPTIMIZATION IN INDUSTRIAL ENGINEERING (JOURNAL OF INDUSTRIAL ENGINEERING)[Internet]. 2019;12(1 (25)):15-22. Available from: https://sid.ir/paper/720892/en

IEEE: Copy

AMIN ASADI, MOHAMMAD SAIDI MEHRABAD, and Faranak Fathi Aghdam, “A Two-dimensional Warranty Model with Consideration of Customer and Manufacturer Objectives Solved with Non-Dominated Sorting Genetic Algorithm,” JOURNAL OF OPTIMIZATION IN INDUSTRIAL ENGINEERING (JOURNAL OF INDUSTRIAL ENGINEERING), vol. 12, no. 1 (25), pp. 15–22, 2019, [Online]. Available: https://sid.ir/paper/720892/en

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