This paper presents a model through which the cost associated with pavement warranty in performance based maintenance contracts are analyzed and quantified. Performance based maintenance contracts are eventually getting popular among the Highway agencies.These are long term pavement warranty contracts where the contractors are responsible for maintaining the pavement condition upto a certain sp...

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 analyses life cycle cost for equipment protected by both base and extended warranty policies from a consumer’s perspective. We assume that the equipment have two types of failures: minor and catastrophic. A minor failure can be corrected by a minimal repair whereas a catastrophic failure can only be removed by a replacement. The equipment is assumed to be maintained at no charge to t...

This paper addresses the problem related to the adoption of an extended warranty period for randomly failing products sold under warranty. The possibility of buying an extended warranty for a given additional cost is often offered to the buyer by the manufacturer. The buyer has then to decide to take the extended warranty or not when purchasing the product. We develop in this paper a mathematic...

The quality loss function assumes a fixed target and only accounts for immediate issues within manufacturing facilities whereas warranty loss occurs during customer use. Based on the two independent variables, product performance and consumers’ expectation, a methodology to predict the probability of customer complaint is presented in this paper. The formulation presented will serve as a basic ...

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...