| 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.