IDEAS home Printed from https://ideas.repec.org/a/wly/navres/v46y1999i1p91-106.html
   My bibliography  Save this article

Comparisons of renewable warranties

Author

Listed:
  • Jie Mi

Abstract

Two types of warranties are commonly applied. There are replacement‐free warranty and pro‐rata warranty. The third warranty is the mixing of the above two. That is it has a replacement‐free stage followed by a pro‐rata stage. In addition to the above classification, warranties can also be a renewable or nonrenewable. No matter which warranty is used, it always incurs certain cost to the manufacturer. Moreover, often manufacturers want to improve the quality of products by burn‐in before delivering them to consumers, and this incurs an extra cost. This article considers the random costs for both burn‐in and renewable warranty, and derives the mean warranty cost. Then the mean costs corresponding to pure replacement‐free warranty, mixing renewable warranty, and pure pro‐rata warranty are compared. Furthermore, the mean costs under the same warranty policy associated with different lifetime distributions of products are also compared. © 1999 John Wiley & Sons, Inc. Naval Research Logistics 46: 91–106, 1999

Suggested Citation

  • Jie Mi, 1999. "Comparisons of renewable warranties," Naval Research Logistics (NRL), John Wiley & Sons, vol. 46(1), pages 91-106, February.
    • Handle: RePEc:wly:navres:v:46:y:1999:i:1:p:91-106
    DOI: 10.1002/(SICI)1520-6750(199902)46:13.0.CO;2-P
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/(SICI)1520-6750(199902)46:13.0.CO;2-P
    Download Restriction: no
    File URL: https://libkey.io/10.1002/(SICI)1520-6750(199902)46:13.0.CO;2-P?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
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. D. G. Nguyen & D. N. P. Murthy, 1984. "Cost analysis of warranty policies," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 31(4), pages 525-541, December.
    4. Edward W. Frees & Seong-Hyun Nam, 1988. "Approximating Expected Warranty Costs," Management Science, INFORMS, vol. 34(12), pages 1441-1449, December.
    5. Jie Mi, 1996. "Minimizing Some Cost Functions Related to Both Burn-In and Field Use," Operations Research, INFORMS, vol. 44(3), pages 497-500, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. M Shafiee & M Finkelstein & S Chukova, 2011. "Burn-in and imperfect preventive maintenance strategies for warranted products," Journal of Risk and Reliability, , vol. 225(2), pages 211-218, June.
    2. Zhi-Sheng Ye & Loon-Ching Tang & Min Xie, 2014. "Bi-objective burn-in modeling and optimization," Annals of Operations Research, Springer, vol. 212(1), pages 201-214, January.
    3. Seung-Hwan Ham & Rae Young Kim, 2022. "Teachers’ Epistemological Assumptions about Educational Inequality in Four Societies: A Holistic Reading Strategy for Examining Sociocultural Epistemologies," Sustainability, MDPI, vol. 14(4), pages 1-11, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Ji Cha & Maxim S. Finkelstein, 2009. "Stochastically ordered subpopulations and optimal burn-in procedure," MPIDR Working Papers WP-2009-030, Max Planck Institute for Demographic Research, Rostock, Germany.
    3. Henry W. Block & Thomas H. Savits & Harshinder Singh, 2002. "A Criterion for Burn-in that Balances Mean Residual Life and Residual Variance," Operations Research, INFORMS, vol. 50(2), pages 290-296, April.
    4. 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.
    5. Sheu, Shey-Huei & Chien, Yu-Hung, 2005. "Optimal burn-in time to minimize the cost for general repairable products sold under warranty," European Journal of Operational Research, Elsevier, vol. 163(2), pages 445-461, June.
    6. Ji Hwan Cha & Sangyeol Lee & Jie Mi, 2004. "Bounding the optimal burn‐in time for a system with two types of failure," Naval Research Logistics (NRL), John Wiley & Sons, vol. 51(8), pages 1090-1101, December.
    7. D. Murthy, 2006. "Product warranty and reliability," Annals of Operations Research, Springer, vol. 143(1), pages 133-146, March.
    8. Edward P. C. Kao & Marion Spokony Smith, 1992. "On excess‐, current‐, and total‐life distributions of phase‐type renewal processes," Naval Research Logistics (NRL), John Wiley & Sons, vol. 39(6), pages 789-799, October.
    9. Mohammadi, Faezeh & Izadi, Muhyiddin & Lai, Chin-Diew, 2016. "On testing whether burn-in is required under the long-run average cost," Statistics & Probability Letters, Elsevier, vol. 110(C), pages 217-224.
    10. Huang, Yeu-Shiang & Gau, Wei-Yo & Ho, Jyh-Wen, 2015. "Cost analysis of two-dimensional warranty for products with periodic preventive maintenance," Reliability Engineering and System Safety, Elsevier, vol. 134(C), pages 51-58.
    11. Mitra, Amitava & Patankar, Jayprakash G., 1997. "Market share and warranty costs for renewable warranty programs," International Journal of Production Economics, Elsevier, vol. 50(2-3), pages 155-168, June.
    12. E. Salehi & M. Asadi, 2012. "Results on the past lifetime of (n − k + 1)-out-of-n structures with nonidentical components," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 75(4), pages 439-454, May.
    13. 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.
    14. Cha, Ji Hwan & Pulcini, Gianpaolo, 2016. "Optimal burn-in procedure for mixed populations based on the device degradation process history," European Journal of Operational Research, Elsevier, vol. 251(3), pages 988-998.
    15. Cha, Ji Hwan & Finkelstein, Maxim, 2011. "Burn-in and the performance quality measures in heterogeneous populations," European Journal of Operational Research, Elsevier, vol. 210(2), pages 273-280, April.
    16. Murthy, D. N. P. & Djamaludin, I., 2002. "New product warranty: A literature review," International Journal of Production Economics, Elsevier, vol. 79(3), pages 231-260, October.
    17. Ibrahim Elbatal & Emrah Altun & Ahmed Z. Afify & Gamze Ozel, 2019. "The Generalized Burr XII Power Series Distributions with Properties and Applications," Annals of Data Science, Springer, vol. 6(3), pages 571-597, September.
    18. J H Cha & M Finkelstein, 2012. "Burn-in via shocks for avoiding large risks," Journal of Risk and Reliability, , vol. 226(3), pages 318-326, June.
    19. Cha, Ji Hwan & Finkelstein, Maxim, 2015. "Environmental stress screening modelling, analysis and optimization," Reliability Engineering and System Safety, Elsevier, vol. 139(C), pages 149-155.
    20. Kao, Edward P. C. & Smith, Marion Spokony, 1996. "Computational approximations of renewal process relating to a warranty problem: The case of phase-type lifetimes," European Journal of Operational Research, Elsevier, vol. 90(1), pages 156-170, April.

    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:navres:v:46:y:1999:i:1:p:91-106. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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)1520-6750 .

    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.