Consider a supply chain involving an independent retailer and an independent manufacturer. The manufacturer produces a single product and sells it exclusively through the retailer. Using this supply chain framework, we develop a game theoretic model to study two commonly observed practices of selling extended warranties: the manufacturer offers the extended warranty directly to the end consumer...

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...

In general, a newly purchased item or system is warranted for a specific period. When the system fails during the warranty period, it is repaired free of charge. Even if the system is repairable, there exists some warranty services under which the manufacturer replaces the failed system during the warranty period. This study considers a case where a manufacturer offers an additional warranty se...

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...

We consider the problem of outsourcing warranty repairs to outside vendors when items have priorities in service. The manufacturer has a contract with a fixed number of repair vendors. The manufacturer pays a fixed fee for each repair done by a vendor which is independent of the repair type and priority class but depends on the vendor. There are a fixed number of items under warranty, and each ...

Most of the brand new items are released on the market with a certain type of warranty. A xed length warranty period is assumed in this paper. A maintenance policy which consists of minimal repair and preventive maintenance is analyzed for the case of known and unknown failure parameters of the item's lifetime distribution. For the second case, two types of Bayesian policies are considered. An ...