Profit Analysis of A Stochastic Model for A System Having Three Stages of Operation Considering Warranty and Two Types of Replacement

The aim of the paper is to analyze a stochastic model for a single-unit system under warranty having three stages of operation, i.e. corresponding to proper installation/burn-in process, useful life period and wear-out period with two types of replacement. It is assumed that the system is under failure free warranty up to useful life period. Two types of service facility, a service engineer during warranty period and available repairman on payment basis are considered. At any stage of operation, on failure of the system, the service engineer/available repairman first inspects the system to judge whether replacement can be done by the same operational stage unit or has to be done by a new unit and accordingly replacement is carried out. Various measures of the system effectiveness are obtained for each stage of operation using Markov process and regenerative point techniques. Profit analysis of the system both in system user's and system provider's point of views are carried out and various conclusions have been drawn by plotting various graphs.