Many systems might have a long time dormant period, during which the systems are not operated. For example, most building services products are installed while a building is constructed, but they are not operated until the building is commissioned. Warranty terms for such products may cover the time starting from their installation times to the end of their warranty periods. Prior to the commis...

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...

Abstract: In recent decades, high profits of extended warranty have caused that third-party firms consider it as a lucrative after-sales service. However, customers division in terms of risk aversion and effect of offering extended warranty on manufacturers’ basic warranty should be investigated through adjusting such services. Since risk-averse customers welcome extended warranty, while the cu...

5.1 INTRODUCTION Up to now, warranty cost models for new products have been analyzed. In view of the present day market, customers are more attracted towards the secondhand products. Thus the present and the succeeding chapters of this thesis focus on analyzing the secondhand products by providing two-dimensional warranty for such products. A two-dimensional warranty policy is characterized by ...