A new warranty servicing strategy ⎯ adding the renewing free-replacement warranty to the rebate policy
نویسندگان
چکیده
In this study, a new warranty service strategy is proposed and analyzed. This strategy adds the renewing free-replacement warranty to a non-repairable product sold under the rebate warranty policy. According to the renewing free-replacement warranty, the seller (manufacturer) is responsible for replacing all failed product during the warranty period, and the warranty begins anew with each replacement. For the rebate policy, the seller has to refund some proportion of the sales price if the product fails during the warranty period. Whenever a failed product is brought in for replacement within the renewing warranty period, the seller has two options to perform the replacement: replace the failed product by a new one, or by a repaired one from the stock of repaired products. From the perspective of the seller, conditions to provide this renewing free-replacement warranty in the rebate policy are derived at under some minor assumptions. A numerical example as well as a sensitive analysis is carried out.
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