Article ID: | iaor1988107 |
Country: | United States |
Volume: | 34 |
Issue: | 12 |
Start Page Number: | 1441 |
End Page Number: | 1449 |
Publication Date: | Dec 1988 |
Journal: | Management Science |
Authors: | Frees Edward W., Nam Seong-Hyun |
Keywords: | stochastic processes |
In this paper, the authors survey a portion of the literature in the analysis of warranty costs. In order to compare the price of different warranty policies, they review a framework which leads to expressing the expected costs in terms of complex functions arising in renewal theory. These functions and several approximations are discussed. In particular, a straight line approximation performs well.