In today’s global environment, technology is constantly evolving. Being able to stay up-to-date with the very latest technological advances can be extremely hard to accomplish. As a result of these changes and developments in technology, which often come unexpectedly, consumers are frequently tempted to update their devices to the very latest model. The result is that the life cycle of a produc...

This paper addresses the problem of durable goods manufacturers in an oligopoly seeking optimal values for three decision variables: product warranty, reliability and price. Each ®rm seeks a warranty-reliability-price combination that maximizes expected pro®t subject to quite general constraints on the ®rm's decision variables. Warranty serves as a signal of product reliability, which is not ob...

In this paper a stochastic model for a single unit repairable system with Preventive Maintenance (PM) under warranty is analyzed in details by using supplementary variable technique. The cost of repair during warranty is born by the manufacturers, but warranty does not apply to product failure due to user-induced damage such as cracked screen or cracked casing, accident, misuse, physical damage...

2 Shaomin Wu 1 3 Cranfield University, School of Applied Sciences, Cranfield, Bedfordshire MK43 0AL, UK 4 5 Abstract 6 Warranty claims are not always due to product failures. They can also be caused by two types of human 7 factors. On the one hand, consumers might claim warranty due to misuse and/or failures caused by other human 8 factors. Such claims might account for more than 10% of all rep...

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...

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...

A product warranty is an agreement offered by a producer to a consumer to replace or repair a faulty item, or to partially or fully reimburse the consumer in the event of a failure. Warranties are very widespread and serve many purposes, including protection for producer, seller, and consumer. They are used as signals of quality and as elements of marketing strategies. In this study we review t...

Insurance companies typically divide premiums into earned and unearned premiums. Unearned premium is the portion of that allocated for remaining period a policy or still needs to be earned. The risk arises when an insufficient cover future losses. Reserves are called deficiency reserves (PDRs). PDR received less attention from actuarial community compared other such as reported but not fully se...

This paper addresses the effect of twodimensional warranty policies on the procedure for forecasting the cost of unreliability. Automotive warranties are characterized by age or time in service and vehicle usage mileage. This paper presents a model where the usage time is a primary variable and the mileage accumulation is estimated from field return data. At each time interval the probability o...

In this paper we consider the problem of minimizing the costs of outsourcing warranty repairs when failed items are dynamically routed to one of several service vendors. In our model, the manufacturer incurs a repair cost each time an item needs repair and also incurs a goodwill cost while an item is awaiting and undergoing repair. For a large manufacturer with annual warranty costs in the tens...