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Development of lifetime warranty policies and models for estimating costs

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  • Chattopadhyay, Gopinath
  • Rahman, Anisur

Abstract

In today's fiercely competitive products market, product warranty has started playing an important role. The warranty period offered by the manufacturer/dealer has been progressively increasing since the beginning of the 20th Century. Currently, a large number of products are being sold with long-term warranty policies in the form of extended warranty, warranty for used products, service contracts and lifetime warranty policies. Lifetime warranties are relatively a new concept. The modelling of failures during the warranty period and the costs for such policies are complex since the lifespan in these policies are not defined well and it is often difficult to tell about life measures for the longer period of coverage due to usage pattern/maintenance activities undertaken and uncertainties of costs over the period. This paper focuses on defining lifetime, developing lifetime warranty policies and models for predicting failures and estimating costs for lifetime warranty policies.

Suggested Citation

  • Chattopadhyay, Gopinath & Rahman, Anisur, 2008. "Development of lifetime warranty policies and models for estimating costs," Reliability Engineering and System Safety, Elsevier, vol. 93(4), pages 522-529.
    • Handle: RePEc:eee:reensy:v:93:y:2008:i:4:p:522-529
    DOI: 10.1016/j.ress.2007.02.005
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    References listed on IDEAS

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    1. Richard Barlow & Larry Hunter, 1960. "Optimum Preventive Maintenance Policies," Operations Research, INFORMS, vol. 8(1), pages 90-100, February.
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    Cited by:

    1. Van Dyck, Jozef & Verdonck, Tim, 2014. "Precision of power-law NHPP estimates for multiple systems with known failure rate scaling," Reliability Engineering and System Safety, Elsevier, vol. 126(C), pages 143-152.
    2. Esmaeili, M. & Shamsi Gamchi, N. & Asgharizadeh, E., 2014. "Three-level warranty service contract among manufacturer, agent and customer: A game-theoretical approach," European Journal of Operational Research, Elsevier, vol. 239(1), pages 177-186.
    3. Wang, Xin & Xie, Wei & Ye, Zhi-Sheng & Tang, Loon-Ching, 2017. "Aggregate discounted warranty cost forecasting considering the failed-but-not-reported events," Reliability Engineering and System Safety, Elsevier, vol. 168(C), pages 355-364.
    4. Shafiee, Mahmood & Chukova, Stefanka, 2013. "Maintenance models in warranty: A literature review," European Journal of Operational Research, Elsevier, vol. 229(3), pages 561-572.
    5. Wu, Shaomin, 2011. "Warranty claim analysis considering human factors," Reliability Engineering and System Safety, Elsevier, vol. 96(1), pages 131-138.
    6. Kirkizoğlu, Zeynep & Karaer, Özgen, 2022. "After-sales service and warranty decisions of a durable goods manufacturer," Omega, Elsevier, vol. 113(C).
    7. Darghouth, M.N. & Ait-kadi, D. & Chelbi, A., 2017. "Joint optimization of design, warranty and price for products sold with maintenance service contracts," Reliability Engineering and System Safety, Elsevier, vol. 165(C), pages 197-208.
    8. Hooti, Fatemeh & Ahmadi, Jafar & Longobardi, Maria, 2020. "Optimal extended warranty length with limited number of repairs in the warranty period," Reliability Engineering and System Safety, Elsevier, vol. 203(C).
    9. Seyed Ahmad Yazdian & Kamran Shahanaghi & Ahmad Makui, 2016. "Joint optimisation of price, warranty and recovery planning in remanufacturing of used products under linear and non-linear demand, return and cost functions," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(5), pages 1155-1175, April.
    10. Westerweel, Bram & Basten, Rob J.I. & van Houtum, Geert-Jan, 2018. "Traditional or Additive Manufacturing? Assessing Component Design Options through Lifecycle Cost Analysis," European Journal of Operational Research, Elsevier, vol. 270(2), pages 570-585.
    11. Sezgin Çağlar Aksezer, 2023. "Sustainability via Extended Warranty Contracts: Design for a Consumer Electronics Retailer," Sustainability, MDPI, vol. 16(1), pages 1-11, December.

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