A Decision-Making Model of the Optimum Relationship between Enterprise´s Product Profits Target and Warranty Period

Researching the optimum relationship between the enterprises´ product profits target and warranty period can help enterprises to formulate the reasonable product warranty. In the present paper, a new decision model is developed for producers to determine the optimum relationship between enterprise´s product profits target and warranty period based on extreme value principle. Through the graphic and quantity analysis, the enterprises´ may break the value concept of that offering the longest products warranty period is same as created the best service value for the user realize the goal of providing higher and better service for the user.