Two-dimensional warranty repair strategy based on minimal and complete repairs

Two-dimensional warranty repair strategy based on minimal and complete repairs

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Article ID: iaor20071121
Country: Netherlands
Volume: 44
Issue: 11/12
Start Page Number: 1133
End Page Number: 1143
Publication Date: Dec 2006
Journal: Mathematical and Computer Modelling
Authors: ,
Keywords: warranty
Abstract:

For repairable products, the warrantor has options in choosing the degree of repair applied to an item that has failed within the warranty period. We focus on a particular warranty repair strategy, related to the degree of the warranty repair, for non-renewing, two-dimensional, free of charge to the consumer warranty policy. We consider a rectangular warranty region and divide it into three disjoint subregions, so that each of these subregions has a preassigned degree of repair for a faulty item. Our main goal is to determine the subregions, so that the associated expected warranty servicing cost per item sold is minimised. A comparison between our strategy and previously studied, more restrictive, ones is provided.

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