Search Results (15)

Vehicle owners often use certified service centers throughout the warranty period, which usually extends for five years after buying. Nonetheless, after this timeframe concludes, a large number of owners turn to unapproved service providers, mainly motivated by financial factors. This change signifies a significant drop in income for automakers and their certified service networks. To tackle this issue, manufacturers utilize customer relationship management (CRM) strategies to enhance customer loyalty, usually depending on segmentation methods to pinpoint potential clients. However, conventional approaches frequently do not successfully forecast which clients are most likely to need or utilize maintenance services. This research introduces a machine learning-driven framework aimed at forecasting the probability of monthly maintenance attendance for customers by utilizing an extensive historical dataset that includes information about both customers and vehicles. Additionally, this predictive approach supports workforce planning and scheduling within after-sales service centers, aligning with AI-driven labor optimization frameworks such as those explored in the AI4LABOUR project. Four algorithms in machine learning—Decision Tree, Random Forest, LightGBM (LGBM), and Extreme Gradient Boosting (XGBoost)—were assessed for their forecasting capabilities. Of these, XGBoost showed greater accuracy and reliability in recognizing high-probability customers. In this study, we propose a machine learning framework to predict vehicle maintenance visits for after-sales services, leading to significant operational improvements. Furthermore, the integration of AI-driven workforce allocation strategies, as studied within the AI4LABOUR (reshaping labor force participation with artificial intelligence) project, has contributed to more efficient service personnel deployment, reducing idle time and improving customer experience. By implementing this approach, we achieved a 20% reduction in information delivery times during service operations. Additionally, survey completion times were reduced from 5 min to 4 min per survey, resulting in total time savings of approximately 5906 h by May 2024. The enhanced service appointment scheduling, combined with timely vehicle maintenance, also contributed to reducing potential accident risks. Moreover, the transition from a rule-based maintenance prediction system to a machine learning approach improved efficiency and accuracy. As a result of this transition, individual customer service visit rates increased by 30%, while corporate customer visits rose by 37%. This study contributes to ongoing research on AI-driven workforce planning and service optimization, particularly within the scope of the AI4LABOUR project. Full article

Extended warranty services have become increasingly important for both manufacturers and retailers, offering avenues for new profit sources and growth opportunities. Focusing on the multiple effects of product quality, this study develops a two-period supply chain decision model to analyze the effects of product quality, pricing, and inventory management in the context of extended warranty services. Using a Stackelberg dynamic game model, this study examines the interaction between a manufacturer and a dominant retailer who provides extended warranties. The results indicate significant differences in optimal decisions between centralized and decentralized supply chains, especially concerning pricing and inventory control. Introducing a “quality cost-sharing” contract enhances product quality and improves coordination, leading to increased profits for both the manufacturer and the retailer. Numerical simulations confirm that the cost-sharing contract effectively balances product quality improvements with supply chain profitability. Full article

As more renewable energy sources are integrated into the United Kingdom’s power grid, flexibility services are becoming integral to ensuring energy security. This has encouraged the proliferation of Lithium-ion battery storage systems, with 85 GW in development. However, battery degradation impacts both system lifespan and the economic viability of large-scale projects. With rising commodity costs and supply chain issues, maximising the value of energy storage is critical. Traditional methods of mitigating battery ageing rely on static limits based on inflexible warranties, which do not fully account for the complexity of battery degradation. This study examined an alternative, degradation-aware current derating strategy to improve system performance. Using an optimisation model simulating UK energy trading, combined with an electro-thermal and semi-empirical battery model, we assessed the impact of this approach. Interviews with industry leaders validated the modelled parameters and the relevance of the alternative strategy. Results show the degradation-aware strategy can extend battery lifetime by 5–8 years and improve net present value and internal rate of return over a 15-year period compared with traditional methods. These findings highlight the economic benefits of flexible, degradation-aware operational strategies and suggest that more adaptive warranties could accelerate renewable energy integration and lower costs for storage operators. Full article

In the supply chain management of electronic products, asymmetric cost information is a prevalent issue that can lead manufacturer to misreport costs, thereby exacerbating supply chain imbalances. This study focuses on the electronic product supply chain with an extended warranty service, where the manufacturer bears the after-sales responsibility during the extended warranty period. It explores the decision-making (DM) issues within the supply chain under different information environments and power structures. The Stackelberg game theory is employed to solve and analyze these models, and the main findings are as follows: (1) When supply chain information is symmetrical, centralized DM is the best choice. However, in cases where the supply chain adopts decentralized DM, it is more beneficial for the retailer and the supply chain if the retailer assumes the role of DM leader. Additionally, when the retail price sensitivity coefficient is low, the manufacturer will compete with the retailer for DM priority. Conversely, when the retail price sensitivity coefficient is higher, the manufacturer is better off as a follower in DM; (2) When the supply chain information is asymmetric, the manufacturer may engage in misreporting, which benefits the manufacturer but is detrimental to both the supply chain and the retailer. Moreover, if the price sensitivity coefficient is low, the manufacturer should lead the supply chain DM. Otherwise, the retailer should take the lead in supply chain DM. Adopting such a flexible strategy will prove advantageous for all parties involved in the supply chain. (3) The strategy of “reducing the retail price and increasing the extended warranty price” is a favorable strategy for the supply chain. Full article

The number of failures serves as a critical indicator that dynamically impacts the reliability of self-announcing failure products, making it highly practical to incorporate the failure count into reliability management throughout the entire product life cycle. This paper investigates comprehensive methodologies for effectively managing the reliability of self-announcing failure products throughout both the warranty and post-warranty stages, taking into account factors such as the failure count, mission cycles, and limited time duration. Three renewable warranty strategies are introduced alongside proposed models for post-warranty replacements. By analyzing variables like the failure number, mission cycles, and time constraints, these proposed warranties provide practical frameworks for efficient reliability management during the warranty stage. Additionally, the introduced warranties utilize cost and time metrics to extract valuable insights that inform decision making and enable effective reliability management during the warranty stage. Moreover, this study establishes cost and time metrics for key post-warranty replacements, facilitating the development of individual cost rates and model applications in other post-warranty scenarios. Analyses of the renewable free-repair–replacement warranties demonstrate that establishing an appropriate number of failures as the replacement threshold can effectively reduce warranty-servicing costs and extend the coverage duration. Full article

Warranty is one of the most important attributes of any product, from both manufacturer and consumer points of view. Although the retailers connect manufacturers to customers by selling goods, traditionally, they have isolated themselves from warranty-related matters such as customer complaints and maintenance costs. However, recent trends in consumer behavior toward extended warranty contracts have changed this approach. While retailers have started to generate considerable revenue from the sale of these contracts, sustainability is also achieved by longer product life cycles. This study analyzed the failure behavior of different classes of cell phone products and their related costs through a chain of consumer electronics retailer operating in Türkiye. To compete on pricing and customer service, a novel policy was designed for the retailer to honor the contracts in house rather than underwriting to a third party insurer as the industry standard. The maintenance records of 328 previous failures were analyzed to plot a failure model. Failure mode and effects analysis was carried out to identify failure classes and the respective costs for extended warranty design for cell phones. The expected warranty costs for coverage of the third, fourth, and fifth years of operation were determined. The results show that the retailer may achieve the same level of profit by increasing customer satisfaction along with the sustainability of the product through repair actions. Full article

Battery charging mode (CM) is a prevalent method of trans-shipping power to new energy vehicles (NEVs). Unfortunately, due to the limited capacity of batteries, typical NEVs can only travel for approximately 350 miles on a single charge and require hours to be recharged. Battery swapping mode (SM), as a novel alternative, can offer an ideal solution by exchanging depleted batteries for recharged ones at swapping stations in the middle of long trips, inevitably influencing potential consumers’ purchase behaviors. To examine the impact of SM and CM on consumers’ purchase intention, this paper examines a duopolistic market consisting of two new energy vehicle manufacturers (i.e., a NEV-SM manufacturer and a NEV-CM manufacturer), who adopt SM and CM to service consumers, respectively. Considering SM is characterized by low initial investment and ease of use for consumers, NEV-CM manufacturers capitalize on extended battery warranty services in response to rivals’ utilization of SM. Thereby, non-cooperative game models are formulated, in which government subsidies are taken into account. The optimal production decision for both the NEV-SM manufacturer and the NEV-CM manufacturer are analyzed under three scenarios: without extended warranty service, with extended warranty service, and with extended warranty service and subsidy. The results show that the two manufacturers’ market dominance relies on the ratio of the swapping station’s convenience to the extended warranty service and the valuation incremental rate. Additionally, we also find that the government subsidy can dramatically improve the NEV-SM manufacturer’s performance at the initial stage, but if the subsidy is insufficient in size at the subsequent stage, this will lead to policy failure and inefficiency in propelling the diffusion of swapping mode. Full article

An effective warranty policy is not only an obligation for the manufacturer or vendor, but it also enhances the willingness of customers to purchase from them in the future. To earn more customers and increase sales, manufacturers or vendors should be inclined to prolong the service life of their products as an effort to gain more customers. Nevertheless, manufacturers or vendors will not provide a boundless warranty in order to dominate the market, since the related warranty costs will eventually exceed the profits in the end. Therefore, it is a question of weighing the advantage of extending the warranty term in order to earn the trust of new customers against the investment. In addition, since deterioration depends on both time and usage, the deterioration estimation for durable products may be incorrect when considering only one factor. For such problems, a two-dimensional deterioration model is suitable, and the failure times are drawn from a non-homogeneous Poisson process (NHPP). Moreover, customers’ heterogeneity, manufacturers’ production capacity, and preventive maintenance services are also considered in this study. A mathematical model with the corresponding solution algorithm is proposed to assist manufacturers in making systematic decisions about pricing, production, and warranty. Finally, managerial implications are also provided for refining related decision-making. Full article

With the rapid development of the internet economy, many manufacturers have opened online direct sales channels and built multi-channel distribution systems. Meanwhile, both consumers and companies are paying more attention to extended warranty services. Considering a dual-channel supply chain with a manufacturer and a retailer, we assume the manufacturer provides an extended warranty in the online direct channel and investigates the decision making of the supply chain players. We develop three game models to study this problem, and they are the basic model without extended warranty (Model B), the decentralized decision model with the manufacturer’s extended warranty (Model M), and the centralized decision model with the manufacturer’s extended warranty (Model C). The Stackelberg game method is used to solve the established model, the influence of relevant parameters on the solution result is analyzed, and different models are compared. Compared with Model B, we find that the whole supply chain always be better, but the retailer would be worse in Model M. Compared with Model M, we find that the entire supply chain always performs better in Model C. Finally, we do some sensitivity analysis. Full article

With the help of advanced digital technologies, product managers can use monitored mission cycles to sustain product reliability. In this study, a random warranty model and a random replacement next (RRN) model are designed to sustain the through-life reliability of the product with monitored mission cycles. The designed random warranty, called a two-stage two-dimensional free repair warranty (2DFRW), can be carried out to sustain the reliability of the product during the warranty stage. In this warranty, ‘whichever occurs first and last’ is used to distinguish the coverage ranges of the latter stage warranties, which is to maintain the warranty fairness by removing the inequity of the former stage warranty. The RRN can be performed to sustain post-warranty reliability, which defines that if the limited number of mission cycles is completed before a working time, then the product will be replaced at next mission cycle completion to extend remaining service life; otherwise, the product will be replaced at a working time. Under the case of the two-stage 2DFRW, the cost rate of the RRN is constructed based on the renewable reward theorem. By simplifying the parameters, some derivative models of the cost rate are presented. Numerical analysis is performed to explore characteristics. Full article

Upgrading traffic signal systems from incandescent bulbs to LED modules over the last two decades has vastly improved the sustainability of this ubiquitous transportation asset. Recent technological upgrades have extended the warrantied life of these assets from 5 years to 15 years. With these advancements, it is vital that prioritization be given to sustainable operations and maintenance strategies which take advantage of the extended lifespan and continued reduction in energy consumption of LED modules. One major limiting factor in determining these strategies is that the service life of new 15-year-warrantied LED modules is currently unknown. Through available literature, this paper identifies the expected service life of 5-year-warrantied LED modules, commonly used from the early 2000s to 2022, as a baseline for comparison. Literature also provides insight into current Inspection, Repair, and Replacement practices. Interviews with manufacturers provide insight into current and future lifespan expectations. Finally, feedback from active transportation agencies provides examples of current practices in the absence of official national guidance, of which there is little. Understanding the current state of practice and expectations for the future will allow for the development of a repair and replacement guideline, ultimately taking maximum advantage of these advancements in sustainable technology. Full article

To meet the different needs of consumers in an E-commerce market environment, more and more enterprises have launched extended warranty services, which can reduce consumer risk and stimulate market demand in E-commerce supply chains. However, knowing who will launch the extended warranty services has become particularly important. To propose an optimal strategy of the extended warranty service provider and seller, three game models are constructed in an E-commerce supply chain consisting of a manufacturer and an E-commerce platform. In addition, this study investigated the effect of extended warranty strategy on consumers. The results show that when the extended warranty coverage and product failure probability are small, the extended warranty provided by the E-commerce platform can simulate the demand of products and extended warranty. The extended warranty provided by the manufacturer is the best choice for the manufacturer. On the other hand, the extended warranty provided by the E-commerce platform is always beneficial for the E-commerce platform and E-commerce supply chain system. The E-commerce platform should take some measures and control some parameters to make up for the losses of the manufacturer, so that the strategy of the extended warranty provided and sold by the E-commerce platform becomes the consistent choice of E-commerce supply-chain members, system, and consumers. Full article

To reduce environmental pollution, the government has issued relevant laws and regulations, and more and more enterprises engage in remanufacturing and recycling used products. Trade old for new and trade old for remanufactured have become marketing means to promote product recycling. The extended warranty service is used to promote the recycling of waste products. To design an optimal extended warranty service strategy and analyze its environment impact in a remanufactured supply chain, game theory is used to model the competitive relationship between a manufacturer and an E-commerce platform. Considering whether the E-commerce platform provides extended warranty service, four models are constructed, and the extended warranty service strategy and its environment impact can be analyzed. The results show that, when the level of substitutability between remanufactured and new products meets a certain rage, new or remanufactured products with extended warranty service strategy can increase the demand for new or remanufactured products, respectively. In the four models, the changing trends of manufacturer’s profit, E-commerce platform’s profit and supply chain’s profit, consumer surplus, environmental impact and social welfare are the same, but only the thresholds are different. From the perspectives of supply chain member, supply chain system, consumer, environment and society, the new and remanufactured products with extended warranty service strategy is the best choice. Full article

The aim of the article is to analyze the method of determining the maintenance costs of buildings based on the method proposed in Polish legal regulations. The analysis of the sensitivity of the method shows that the assumed number of product use cycles during the calculation period has the greatest impact, while the adopted warranty period has the lowest impact. A multi-functional building combining housing, office, service and commercial was analyzed in order to obtain a broader picture of the model’s operation. The results of the analyses allow us to conclude that despite the higher price of materials, the most durable solutions, which are the most expensive to purchase, turn out to be the most advantageous in the entire life cycle of the building. The method proposed in Polish law regulations has certain limitations. In order to level them, it was proposed to extend the method by using NPV (Net Present Value) for calculations and extending the life cycle of the building to 80 years. Full article

The remanufacturing warranty strategy has become an effective mechanism for reducing consumer risk and stimulating market demand in closed-loop supply chain management. Based on the characteristics of consumers’ behavior of purchase decisions, this paper studies the warranty decision model of remanufacturing closed-loop supply chain under the Stackelberg game model. The present study discussed and compared the decision variables, including remanufacturing product pricing, extended warranty service pricing, warranty period and supply chain system profit. The research shows that consumers’ decision-making significantly affirms the dual marginalization effect of the supply chain system while significantly affecting the supply chain warranty decision; the improved revenue sharing contract and the two charge contracts respectively coordinates the manufacturer-led and retail-oriented closed-loop supply chain system, which effectively implements the Pareto improvement of the closed-loop supply chain system with warranty services. In the present study, the model is verified and analyzed by numerical simulation. Full article