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.