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...

Most companies seek efficient rectification strategies to keep their warranty related costs under control. This study develops and investigates different repair strategies for oneand two-dimensional warranties with the objective of minimizing manufacturer’s expected warranty cost. Static, improved and dynamic repair strategies are proposed and analyzed under different warranty structures. Numer...

The objective of this study is to develop a warranty servicing strategy, based on imperfect and minimal repairs, that minimises the total warranty servicing cost. For pre-specified degrees of repair, the expected warranty servicing cost is minimised by optimally partitioning a two-dimensional rectangular warranty region into n disjoint subregions. We numerically illustrate the imperfect repair ...

It is observed that in India for all types of two wheeler vehicles, warranty offered is Free Replacement Warranty (FRW) policy. Present paper deals primarily with the cost analysis of warranty being given on different types of two wheeler vehicles, in India. Under the existing cost set up, a new warranty model, which involves an initial FR period, followed by the Pro Rata period, has been devel...

The paper studies the optimal production run length for a deteriorating production system. The optimal warranty cost is determined by a balance between the warranty cost of the manufacturer and the buyer during its warranty period. It is assumed that the elapsed time until the production process shift is age dependent and arbitrarily distributed. The objective is to minimize the total cost per ...

Warranty is a powerful marketing tool for the manufacturer and a good protection for both the manufacturer and the customer. However, warranty always involves additional costs to the manufacturer, which depend on product reliability characteristics and warranty parameters. This paper presents an approach to optimisation of warranty parameters for known product failure distribution to reduce the...

Many services products are installed in a complex system that is operated only when the entire system is completed. The time from their installation to commissioning, called a dormant state in this paper, may take several years for systems such as complete buildings or aircraft. Warranties for the products may cover the time starting from their installation to a certain time. Warranty cost on r...

For products sold with a warranty, preventive maintenance (PM) actions by either the manufacturer and/or the buyer has an impact on the total cost for both parties. In this investigation, we use a model to study the effect of PM carried out by the buyer on non-repairable items sold under a free replacement renewing warranty, and a penalty will be incurred by the buyer if the item fails before t...

All multi-component product manufacturing companies face the problem of warranty cost estimation. Failure rate analysis of components plays a key role in this problem. Data source used for failure rate analysis has traditionally been past failure data of components. However, failure rate analysis can be improved by means of fusion of additional information, such as symptoms observed during afte...