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International Society of Science and Applied Technologies |
| Numerical Evaluation of the Effectiveness of an Extended Warranty based on a Periodical Replacement Model | ||||
| Author | Nobuyuki Tamura
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| Abstract | We consider a product with a base warranty provided by a manufacturer that is operated under a periodical replacement policy. Upon the occurrence of failures within the warranty, the product is repaired without cost to the customer and the failure process follows a generalized Polya process. After expiration of the base warranty, we may contract an extended warranty that the degree of repair and a loss due to failure are different from the case of the base warranty. To evaluate the effectiveness of the extended warranty, we derive expected cost rates with and without the extended warranty and perform numerical analysis for their comparison. As a result, we establish conditions on relative utilities for the extended warranty.
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| Keywords | base warranty, extended warranty, periodical replacement, generalized Polya process, imperfect repair | |||
| Article #: RQD2025-449 | ||||
Proceedings of 30th ISSAT International Conference on Reliability & Quality in Design |