On phase type arithmetico-geometric process and its application to deteriorating systems with warranty (Q2205065)

Summary: This research article makes an attempt to introduce a phase type arithmetico-geometric process and illustrate its applicability to a deteriorating system with fixed warranty. Properties, renewal function, second moment and variance of the underlying counting process are derived analytically and supplemented numerically in the case of three distributions: exponential, Erlang distribution of order 3 and Coxian distribution of order 2. Sensitivity analysis and graphical illustrations are provided to highlight the effect of various cost parameters on the expected warranty cost by means of the Exponential and Erlang distribution of order 2.