Warranty analysis of a two-component system with type I stochastic dependence

Abstract : This paper develops the warranty cost analysis of a two-component in series system with stochastic dependence. From the perspectives of both the manufacturer and the consumer, the short-run total profits and costs under the non-renewing free replacement (non-renewing FRW) policy and the renewing free replacement (RFRW) policy are derived respectively. Numerical examples are given showing the impact of the failure dependence to both the consumer and the manufacturer.