| Article ID: | iaor19981594 |
| Country: | United Kingdom |
| Volume: | 6 |
| Issue: | 1 |
| Start Page Number: | 13 |
| End Page Number: | 24 |
| Publication Date: | Jan 1995 |
| Journal: | IMA Journal of Mathematics Applied in Business and Industry |
| Authors: | Yun Won Young, Bohoris George A. |
| Keywords: | warranty |
In this paper, a comprehensive set of equations is proposed for the calculation of the expected value (mean) and variance of a manufacturer’s total warranty costs. These equations are valid under hybrid warranty, minimal repair, and potentially any form of failure distribution – including the exponential and Weibull. Finally, analytical equations and an extensive sensitivity analysis are provided for these two failure distributions.