简介:Thereliabilityoftheproductsoldunderawarrantyisusuallymaintainedbythemanufacturerduringthewarrantyperiod.Aftertheexpiryofthewarranty,however,theconsumerconfrontsaproblemabouthowtomaintainthereliabilityoftheproduct.Thispaperproposes,fromtheconsumer’sperspective,areplacementpolicyaftertheextendedwarranty,undertheassumptionthattheproductissoldundertherenewablefreereplacementwarranty(RFRW)policyinwhichthereplacementisdependentontherepair-costthreshold.Theproposedreplacementpolicyisthereplacementaftertheextendedwarrantyisperformedbytheconsumerbasedontherepair-costthresholdorpreventivereplacement(PR)age,whicharedecisionvariables.Theexpectedcostratemodelisderivedfromtheconsumer’sperspective.Theexistenceanduniquenessoftheoptimalsolutionthatminimizestheexpectedcostrateperunittimeareoffered.Finally,anumericalexampleispresentedtoexemplifytheproposedmodel.