A large number of products are now being sold with long-term warranty policies. This is mainly due to fierce competition in the market and customer demand. Offering long term warranty results in additional complexities in estimating costs associated with warranty servicing due to the uncertainties associated with usage, preventive maintenance and warranty servicing strategies. This paper review...

The Proxel method is a state space-based approach to the simulation of discrete stochastic models. It implements the method of supplementary variables in an algorithmic, rather than mathematical way, without using partial differential equations and is able to solve a wide class of stochastic models. The approach has proven to be very competitive with discrete-event simulation for a class of mod...

For second-hand products sold with warranty, the expected warranty cost for an item to the manufacturer, depends on (i) the age and/or usage as well as the maintenance history for the item and (ii) the terms of the warranty policy. The paper develops probabilistic models to compute the expected warranty cost to the manufacturer when the items are sold with free replacement or pro rata warrantie...

For repairable items under the two-dimensional warranty, the manufacturer expenses warranty costs for rectifying the failures occurring over the warranty coverage. Preventive maintenance actions reduce the occurrence intensity of item failures, and hence the warranty cost resulted from corrective maintenance, but bring additional preventive maintenance cost. In this paper, we investigate a peri...

Purpose – The purpose of the paper is to develop a conceptual framework that integrates the technology and commercial issues early at the design stage to minimize warranty costs in the most effective and efficient manner and also to develop a model for optimization of warranty with specific focus on reliability and warranty policies. Design/methodology/approach – The critical issues in warranty...