Cost analysis of two-attribute warranty policies based on the product usage rate

Author

Chun, Young H. ; Tang, Kwei

Author_Institution

Dept. of Inf. Syst. & Decision Sci., Louisiana State Univ. Baton Rouge, LA, USA

Volume

46

Issue

2

fYear

1999

fDate

5/1/1999 12:00:00 AM

Firstpage

201

Lastpage

209

Abstract

In the so-called two-attribute warranty policy, two types of warranty criteria, such as the age and mileage of an automobile, are employed simultaneously to determine the eligibility of a warranty claim. The authors propose in the paper several decision models that estimate the expected total cost incurred under various types of two-attribute warranty policies. They also perform a sensitivity analysis to study the effects of several model parameters, such as the discount rate, the product usage rate, and the warranty terms, on the total warranty cost

Keywords

costing; economics; failure analysis; product liability; reliability; sensitivity analysis; cost analysis; decision models; discount rate; expected total cost; product usage rate; sensitivity analysis; total warranty cost; two-attribute warranty policies; warranty claim eligibility; warranty criteria; warranty terms; Automobiles; Costs; Electric breakdown; Insurance; Manufacturing; Marketing and sales; Research and development management; Sensitivity analysis; Standards Board; Warranties;

fLanguage

English

Journal_Title

Engineering Management, IEEE Transactions on

Publisher

ieee

ISSN

0018-9391

Type

jour

DOI

10.1109/17.759149

Filename

759149