Publications
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Shizhe Peng, Wei Jiang, Wenpo Huang*, and Qinglin Luo. (2024). Reliability Engineering & System Safety, 242, 109743.
This study considers a manufacturer performing preventive maintenance (PM) on a product according to a one- or two-dimensional (2-D) policy. The one-dimensional PM policy is based on either time or usage, while in the two-dimensional case, PM is scheduled based on both scales. The product carries a 2-D warranty that offers protection for a certain amount of time and usage. Its cumulative usage is continuously monitored by the manufacturer and is assumed to follow a gamma process. In this context, we first propose a doubly stochastic Poisson process model for product failures where the stochastic intensity is influenced by the gamma usage process in an additive manner. We then explicitly derive the expected total costs of the two one-dimensional PM policies using the concepts of first hitting times and gamma bridges. For the 2-D PM policy, we express the associated cost in terms of the value function of a dynamic programming model. In the numerical experiments, we show how the variability of the usage process affects the costs of the three PM policies and find that the optimal 2-D policy degenerates into a one-dimensional policy.
Shizhe Peng, Wei Jiang, Lai Wei, and Xiao-Lin Wang*. (2022). International Journal of Production Economics, 254, 108580.
In this paper, we present a new cost-sharing preventive maintenance (PM) program for a product protected by a two-dimensional (2-D) warranty. The product is preventively maintained by its manufacturer in the warranty period and by a customer in the post-warranty period. To better coordinate their decisions, the cost of PM during the warranty period is borne jointly by both parties based on a fixed ratio. We propose a new way of designing such a cost-sharing PM program by using the customer’s expected post-warranty cost. We find a failure intensity threshold that determines whether the customer should carry out PM at the beginning of the post-warranty period. It is shown that cost sharing can reduce the failure intensity at this point, which in turn can reduce the customer’s expected total cost. Given a specific usage rate of the product, we then derive the optimal cost-sharing ratio from the customer’s perspective. In the numerical study, we examine the effect of usage rate on the optimal cost-sharing ratio as well as the benefits gained from cost sharing.
Shizhe Peng, Wei Jiang*, and Wenhui Zhao. (2021). IISE Transactions, 53(11), 1231–1243.
This article considers Preventive Maintenance (PM) under a two-dimensional (2-D) warranty contract with time and usage limits. From a manufacturer’s point of view, we develop a dynamic maintenance model with a random horizon to include the impact of random and dynamic usage rates on PM decisions. The model treats the cumulative amount of usage as a state variable that provides information about the failure rate and the expiration of the 2-D warranty. We characterize the optimal PM policy by a sequence of usage-dependent failure rate thresholds. Each threshold is a function of the cumulative usage. Our failure rate threshold policy chooses one of the following two actions in each period: performing perfect PM or no PM. Specifically, the manufacturer should bring the failure rate back to its original level when it exceeds the threshold in the corresponding period. This policy is also optimal under a constant usage rate. In the numerical experiments, we demonstrate the effectiveness of the proposed policy and conduct a sensitivity analysis to investigate how this policy is affected by the model parameters.
Yanrong Li, Shizhe Peng, Yanting Li, and Wei Jiang*. (2020). Frontiers of Engineering Management, 7, 323–334.
Condition-based maintenance (CBM) detects early signs of failure and dictates when maintenance should be performed based on the actual condition of a system. In this paper, we first review some of the recent research on CBM under various physical structures and signal data. Then, we summarize several kinds of prognostic models that use monitoring information to estimate the reliability of complex systems or products. Monitoring information also facilitates operational decisions in production planning, spare parts management, reliability improvement, and prognostics and health management. Finally, we suggest some research opportunities for the reliability and operations management communities to fill the research gap between these two fields.
Working papers
Xiao-Lin Wang, Shizhe Peng, and Xiaoge Zhang*. Price competition in an oligopolistic extended warranty market. European Journal of Operational Research. Major revision.
Xiao-Lin Wang, Shizhe Peng*, Xiaoge Zhang, and Jianyu Xu. Spare parts provisioning with installed base information: An integrated forecasting and stocking approach. Reliability Engineering & System Safety. Under review.
Esther Yanfei Jin, Wei Jiang, and Shizhe Peng*. Does moral hazard exist in auto insurance? New evidence from telematics data. To be submitted to Finance Research Letters.
Xiyang Hou, Peiqiang Guo*, and Shizhe Peng. Is channel coordination always better in the presence of strategic customers?. To be submitted to International Journal of Production Economics.
Shizhe Peng and Xiao-Lin Wang. ADP, warranty, and RTR. Working in process.
Shizhe Peng, Quanchen Liu*, and Xiyang Hou. Pricing extended warranties in the presence of consumer reliability learning. Working in process.
Shizhe Peng. A PM and iv warranty problem. Working in process.
Ideas
Shizhe Peng. A luck-and-skill/optimal control problem.
Shizhe Peng. A d warranty problem.
Shizhe Peng. A st warranty problem.
Shizhe Peng. A secretary problem.
Shizhe Peng. A portable charger problem.
Shizhe Peng. A blind box problem.
Shizhe Peng. A buy-one-get-one problem.
Shizhe Peng. A tea/storable goods inventory problem.
