In this study we propose an approach of quantifying the risks of misinforming and malfunctioning aiming to assess the quality of a warranty policy. We identify the “quality” of a warranty policy as an integral measure, based on the balance between two types of warranty – the warranty of malfunctioning and warranty of misinforming. This measure is represented in terms of the length of the warran...

An age-dependent repair model is proposed. The notion of the “age” of the product and the degree of repair are used to define the virtual age of the product. The virtual failure rate function and the virtual hazard function related to the lifetime of the product are discussed. Under a non-homogeneous Poisson process scenario the expected warranty costs for repairable products associated with li...

Warranty is a powerful implement for marketing strategy that is used by manufacturersand creates satisfaction for consumers by ensuring to compensate for incorrect operation of the product. Warranty serviceresults ina cost named warranty cost for a manufacturer.This cost is a function of warranty policy, regions, and product failures pattern. Since this service coversthe cost of uncertain failu...

The cost of servicing a warranty depends, amongst other factors, on the type of repair performed under warranty. Although ‘‘all minimal repair’’ and ‘‘all replacement’’ policies are easy to implement and analyze, they are not always feasible and/or practical. Having a combination of different types of repair often leads to lower warranty servicing costs. In this article, to reduce the warranty ...

In this paper, a replacement-repair model is developed to study a warranty servicing policy for a class of multi-state deteriorating and repairable products, based on a computer simulation analysis. In each working state there is a determined probability for transition to each of the subsequent states, given that it has made a transition out of that state. There are two parameters that determin...

For products sold with a warranty, preventive maintenance (PM) actions by either the manufacturer and/or the buyer has an impact on the total cost for both parties. In this investigation, we use a model to study the effect of PM carried out by the buyer on non-repairable items sold under a free replacement renewing warranty, and a penalty will be incurred by the buyer if the item fails before t...