When product quality is unobservable to consumers, a manufacturer can convey the quality information using signals such as warranty and brand reputation. This paper develops a noncooperative duopoly model to study the interaction between warranty, brand reputation and product quality. Two competing manufacturers offer warranties on their respective product with different qualities, which is uno...

Forecasting warranty claims for recently launched products that have short histories of claim records is vitally important for manufacturers in preparing their fiscal plans. Since the amount of historical claim data for such products is not large enough, developing forecasting models with good performance has been a difficult problem. The objective of this paper is to develop an algorithm for f...

Abstract This paper aims to classify and assess the impact of charter party clauses against contractual terms marine insurance contracts. Initially, a term may be classified as condition, warranty, or an innominate when nature clause is not yet classified. Based on this classification, effectiveness those available remedies vary significantly upon dispute termination. Specifically, classificati...

Usually the warranty data response used to make predictions of future failures is the number of weeks (or another unit of real time) in service. Use-rate information usually is not available (automobile warranty data are an exception, where both weeks in service and number of miles driven are available for units returned for warranty repair). With new technology, however, sensors and smart chip...

W quantify the economic value of hardware base warranties in the U.S. server market to manufacturers, channel intermediaries, and customers. We further decompose the value of a warranty into its insurance value and its price discrimination value, which are the two main rationales for warranty provision in the server market. We use structural modeling and counterfactual experiments to accomplish...

In many companies, warranty management functions are handled in isolation without the necessary focus on analyzing the impact of each function on discrete value chain functions such as manufacturing, quality, and services. In many such companies, the warranty management function is fragmented across financials, product design, manufacturing, quality and reliability, service chain, sales, and ma...

Forecasting the number of warranty claims is vitally important for manufacturers/warranty providers in preparing fiscal plans. In existing literature, a number of techniques such as log-linear Poisson models, Kalman filter, time series models, and artificial neural network models have been developed. Nevertheless, one might find two weaknesses existing in these approaches: (1) they do not consi...

The Proxel method is a state space-based approach to the simulation of discrete stochastic models. It implements the method of supplementary variables in an algorithmic, rather than mathematical way, without using partial differential equations and is able to solve a wide class of stochastic models. The approach has proven to be very competitive with discrete-event simulation for a class of mod...