Warranty Cost Analysis for Multi-State Products Protected by Lemon Laws

The implementation of lemon laws in America has played an important role improving the quality after-sales service. Nowadays, many countries, such as China, Canada, Europe, Australia, Singapore, and South Korea, have adopted various industries to protect interest consumers. From perspective manufacturers, accurate estimation cost warranty service is great importance guiding product pricing, control, design policies. According terms different laws, two models considering repair time numbers for failures are proposed this paper. Products under these multi-state, Markov processes used model degradation products. In first model, a will be replaced by new one if or number exceeds their respective thresholds over period. Under second both catastrophic minor considered. A following three conditions met period: action (regardless failure type) longer than threshold; larger preset occurs. expected rates derived assumption renewable terms. Numerical examples given illustrate results obtained.