|Start Page Number:||984|
|End Page Number:||991|
|Publication Date:||Oct 2008|
|Authors:||Matis Timothy I, Jayaraman Raja, Rangan Alagar|
A repairable product under a non-renewing combined warranty policy that is subject to a displaced log-linear demand function of the product's price and pro rata period length is considered. Expressions for the manufacturer's long-run average profit per unit time under replacement, minimal and general repair options are obtained. In addition, expressions for the stationary points and second-order conditions of the profit function are presented. Numerical illustrations that demonstrate optimal product pricing, pro rata length determination, and repair option selection to maximize the manufacturers, profit are given.