| Article ID: | iaor2002518 |
| Country: | United States |
| Volume: | 30 |
| Issue: | 12 |
| Start Page Number: | 1191 |
| End Page Number: | 1199 |
| Publication Date: | Dec 1998 |
| Journal: | IIE Transactions |
| Authors: | Murthy D.N.P., Hussain A.Z.M.O. |
| Keywords: | warranty |
When products of an uncertain quality are sold with a warranty, the expected warranty cost depends on the reliability of the product and on the quality uncertainty. This cost can be reduced through the use of redundancy and/or quality control techniques. However, these routes increase the manufacturing cost. This paper develops a model to determine the optimal redundancy and quality control strategies that achieve a trade-off between the two costs.