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...

The high cost of lenient return policies force consumer electronics OEMs to look for ways to recover value from lightly used consumer returns, which constitute a substantial fraction of sales and cannot be re-sold as new products. Refurbishing to remarket or to fulfill warranty claims are the two common disposition options considered to unlock the value in consumer returns, which present the OE...

In this paper we study the distributional properties (mean, variance, characteristic function) of the discounted warranty cost (DWC) for general warranty programs including free replacement (FRW) pro rata (PRW) and FRW/PRW in the context of perfect repair. Since only failure times and types are needed in the derivation of these properties, the reliability of the systems is modeled according to ...

In this study, we deal with a model to study the effect of PM carried out by both parties on a repairable product sold under a non-renewing, free-repaired warranty policy. During the warranty period, the seller will repair the deteriorated but repairable product and charges no fee to the buyer. After the warranty period, the deteriorated product is also repaired by the seller but the buyer will...

Abstract The paper considers a sequential inspection policy in an imperfect production process which shifts randomly from an ‘in-control’ state to an ‘out-of-control’ state following a general probability distribution. Two different inspection policies are adopted in the proposed model: (i) no action is taken in the intermediate of a production run unless the process is found in an ‘out-of-cont...

I this paper, we study a firm that faces demand from two sources: demand for new items and demand to replace failed items under warranty. We model this setting as a multiperiod single-product inventory problem where the demands for new items in different periods are independent and the demands for replacing failed items depend on the number and ages of the items under warranty. We consider back...

Motivated by the quasi-renewal approach in the preceding chapters which emphasized the importance of improved repairs during warranty, in contrast to a replacement, the present chapter analyzes the impact of degree of repair for second-hand products employing quasi-renewal processes. In general, the significant factors which contribute to warranty cost analysis of second-hand systems are age, u...