Warranty and redundancy design with uncertain quality

Warranty and redundancy design with uncertain quality

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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: ,
Keywords: warranty
Abstract:

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.

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