Title: On prorated servicing costs for two-dimensional warranties with combined repair-replacement strategies

Authors: Raja Jayaraman, Timothy I. Matis

Addresses: Department of Industrial Engineering, 4207 Bell Engineering Center, University of Arkansas, Fayetteville, Arkansas 72701, USA. ' Department of Industrial Engineering, Texas Tech University, Box 43061, Lubbock, Texas 79409, USA

Abstract: We study a non-renewing two-dimensional warranty policy for repairable products with pro-rated cost for rectifying failures within a warranty coverage period defined by a rectangular region. Product failures in different warranty regions have different cost implications based on repair-replacement strategy employed by the manufacturer and the time and usage at the event of product failure. We obtain expressions for expected cost to the manufacturer based on two possible repair-replacement strategies which can be employed towards servicing the product in the event of failures and present the respective costs associated with them.

Keywords: warranty analysis; 2-D warranty policy; pro-rata cost; combination policies; repairable products; product warranty; repair-replacement strategy; product failure; servicing costs.

DOI: 10.1504/IJPD.2010.036391

International Journal of Product Development, 2010 Vol.12 No.3/4, pp.274 - 295

Published online: 02 Nov 2010 *

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