W quantify the economic value of hardware base warranties in the U.S. server market to manufacturers, channel intermediaries, and customers. We further decompose the value of a warranty into its insurance value and its price discrimination value, which are the two main rationales for warranty provision in the server market. We use structural modeling and counterfactual experiments to accomplish...

This article describes prediction methods for the number of future events from a population units associated with an on-going time-to-event process. Examples include warranty returns and product failures that could cause serious threats to property or life. Important decisions such as whether recall should be mandated are often based on predictions. Data, generally right-censored (and sometimes...

In many companies, warranty management functions are handled in isolation without the necessary focus on analyzing the impact of each function on discrete value chain functions such as manufacturing, quality, and services. In many such companies, the warranty management function is fragmented across financials, product design, manufacturing, quality and reliability, service chain, sales, and ma...

Forecasting the number of warranty claims is vitally important for manufacturers/warranty providers in preparing fiscal plans. In existing literature, a number of techniques such as log-linear Poisson models, Kalman filter, time series models, and artificial neural network models have been developed. Nevertheless, one might find two weaknesses existing in these approaches: (1) they do not consi...

Usually the warranty data response used to make predictions of future failures is the number of weeks (or another unit of real time) in service. Use-rate information usually is not available (automobile warranty data are an exception, where both weeks in service and number of miles driven are available for units returned for warranty repair). With new technology, however, sensors and smart chip...

This paper is motivated by the inventory planning issues faced by a manufacturer of a digital projector. The seller faces demand from two sources: new demand, and demand to replace failed items under warranty. We model this setting as a multi-period single product inventory problem where the new demand in different periods are independent and the demand for replacing failed items under warranty...

Manufacturers supplying products under warranty need a strategy to deal with failures during the warranty period: repair the product or replace it by a new one, depending on e.g. age and/or usage of the failed product. An (implicit) assumption in virtually all models is that new products to replace the failed ones are immediately available at given replacement costs. Because of the short life c...