For repairable items sold with free replacement warranty, the actions available to the manufacturer to rectify failures under warranty are to (1) repair the failed item or (2) replace it with a new one. A proper repair-replace strategy can reduce the expected cost of servicing the warranty. In this paper, we study repair-replace strategies for items sold with a two-dimensional free replacement ...

Purpose: In this paper, the minimal repair-replacement warranty policy is used to carry out a warranty cost analysis with warranty servicing times and failure times that are statistically correlated to bivariate distributions. Methods: Based on the developed approach by Park and Pham (2012a), we investigate the property of the Freund’s bivariate exponential distribution and obtain the number of...

Nowadays, offering extended warranty is considered as a lucrative source of income from the perspective of the after-sale service providers. Meanwhile, the main concern is presence or absence of base warranty and strategies adopted by the manufacturer during this period. Moreover, extended warranty structure must be responsive and customer oriented, which not only control the services cost but ...

This study deals with a two-level supply chain consisting of one manufacturer and one retailer. We consider an integrated production inventory system where the manufacturer processes raw materials in order to deliver finished product with imperfect quality to the retailer, where number of defective product has a uniform distribution. The retailer receives product and conducts a 100% inspection....

Problem definition : We examine a dynamic assignment problem faced by large wireless service provider (WSP) that is Fortune 100 company. This company manages two warranties: (i) customer warranty the WSP offers its customers and (ii) an original equipment manufacturer (OEM) OEMs offer WSP. The uses devices refurbished OEM as replacement devices, hence their operation closed-loop supply chain. D...

Descriptive and predictive analytics enable the automotive industry to be pro-active in its management of warranty repairs and the substantial unknown costs associated with future claims. Understanding what makes their customers most dissatisfied can assist manufacturers to take pro-active steps towards restoring satisfaction and increasing the likelihood of customers making future purchases. P...

Descriptive and predictive analytics enable the automotive industry to be pro-active in its management of warranty repairs and the substantial unknown costs associated with future claims. Understanding what makes their customers most dissatisfied can assist manufacturers to take pro-active steps towards restoring satisfaction and increasing the likelihood of customers making future purchases. P...

The quality loss function assumes a fixed target and only accounts for immediate issues within manufacturing facilities whereas warranty loss occurs during customer use. Based on the two independent variables, product performance and consumers’ expectation, a methodology to predict the probability of customer complaint is presented in this paper. The formulation presented will serve as a basic ...