Cost analysis for a deteriorating system using monotone processes with warranty

Purpose – The purpose of this paper is to investigate preventive‐repair warranty policies for repairable deteriorating systems using Zhang's geometric process repair model. Design/methodology/approach – The paper aims to establish the importance of preventive repair during warranty. Three cost models have been developed using the average cost rate for the system as the objective function, employing N‐policy for two models therein. Findings – The models have practical applications in warranty cost analysis, as product warranty is an important factor in designing an optimal maintenance policy. Originality/value – The paper observes that product warranty has not been considered in the study of maintenance policies for repairable deteriorating systems using monotone processes. The numerical example given illustrates that a preventive repair during warranty with N‐policy is preferable compared with a non‐warranted product or a warranted product without preventive repair.