A large number of products are now being sold with long-term warranty policies. This is mainly due to fierce competition in the market and customer demand. Offering long term warranty results in additional complexities in estimating costs associated with warranty servicing due to the uncertainties associated with usage, preventive maintenance and warranty servicing strategies. This paper review...

A warranty policy for a product should balance the interests of both producer and consumer. Consumer protection is typically provided by a guarantee of replacement or some form of repair of the product failing within a promised warranty period, while an approach to provide a corresponding protection for the manufacturer is to limit the maximum usage allowed under warranty. Such warranty policie...

We approximate the distribution of total expenditure of a retail company over warranty claims incurred in a fixed period [0, T ], say the following quarter. We consider two kinds of warranty policies, namely, the non-renewing free replacement warranty policy and the non-renewing pro-rata warranty policy. Our approximation holds under modest assumptions on the distribution of the sales process o...

Warranty is now an integral part of each product. Since its length is directly related to the cost of production, it should be set in such a way that it would maximize revenue generation and customers’ satisfaction. Furthermore, based on the behavior of customers, it is assumed that increasing the warranty period to earn the trust of more customers leads to more sales until the market is sat...

For second-hand products sold with warranty, the expected warranty cost for an item to the manufacturer, depends on (i) the age and/or usage as well as the maintenance history for the item and (ii) the terms of the warranty policy. The paper develops probabilistic models to compute the expected warranty cost to the manufacturer when the items are sold with free replacement or pro rata warrantie...