IDEAS home Printed from https://ideas.repec.org/a/wly/navlog/v29y1982i2p345-356.html
   My bibliography  Save this article

Cost analysis of pro rata and free‐replacement warranties

Author

Listed:
  • John W. Mamer

Abstract

This article examines the short run total costs and long run average costs of products under warranty. Formulae for both consumer cost under warranty and producer profit are derived. The results in the case of the pro rata warranty correct a mistake appearing in Blischke and Scheuer [5]. We also show that expected average cost to both the producer and the consumer of a product under warranty depends on both the mean of the product lifetime distribution and on its failure rate.

Suggested Citation

  • John W. Mamer, 1982. "Cost analysis of pro rata and free‐replacement warranties," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 29(2), pages 345-356, June.
    • Handle: RePEc:wly:navlog:v:29:y:1982:i:2:p:345-356
    DOI: 10.1002/nav.3800290214
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/nav.3800290214
    Download Restriction: no
    File URL: https://libkey.io/10.1002/nav.3800290214?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nicholas Zaino & Toby Berke, 1994. "Some renewal theory results with application to fleet warranties," Naval Research Logistics (NRL), John Wiley & Sons, vol. 41(4), pages 465-482, June.
    2. Liu, Bin & Shen, Lijuan & Xu, Jianyu & Zhao, Xiujie, 2020. "A complimentary extended warranty: Profit analysis and pricing strategy," International Journal of Production Economics, Elsevier, vol. 229(C).
    3. Izzet Sahin & Hakan Polatoglu, 1995. "Distributions of manufacturer's and user's replacement costs under warranty," Naval Research Logistics (NRL), John Wiley & Sons, vol. 42(8), pages 1233-1250, December.
    4. Jie Mi, 1999. "Comparisons of renewable warranties," Naval Research Logistics (NRL), John Wiley & Sons, vol. 46(1), pages 91-106, February.
    5. Marcel F. Neuts, 1988. "Computation and applications of geometric mixtures of convolutions," Naval Research Logistics (NRL), John Wiley & Sons, vol. 35(4), pages 529-537, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:navlog:v:29:y:1982:i:2:p:345-356. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1931-9193 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.