A stochastic model on an additional warranty service contract
Computers and Mathematics with Applications Volume 51 Issue 2
Page 179-188
published_at 2006
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| File | |
| Title ( eng ) |
A stochastic model on an additional warranty service contract
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| Creator |
Rinsaka Koichiro
Sandoh Hiroaki
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| Source Title |
Computers and Mathematics with Applications
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| Volume | 51 |
| Issue | 2 |
| Start Page | 179 |
| End Page | 188 |
| Abstract |
In general, a newly purchased item or system is warranted for a specific period. When the system fails during the warranty period, it is repaired free of charge. Even if the system is repairable, there exist some warranty services under which the manufacturer replaces the failed system during the warranty period. This study considers a case where a manufacturer offers an additional warranty service under which the failed system is replaced by a new one for its first failure, but minimal repairs are carried out to the system for its succeeding failures before the warranty expires. In this paper, we propose a mathematical model for setting a suitable charge of such an additional warranty service. Numerical examples assuming a personal computer are also presented.
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| Keywords |
Warranty Contract
Expected profit
Expected utility
Optimal strategy
Replacement
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| NDC |
Information science [ 007 ]
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| Language |
eng
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| Resource Type | journal article |
| Publisher |
Elsevier, Co.Ltd.
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| Date of Issued | 2006 |
| Rights |
Copyright (c) 2006 Elsevier Ltd
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| Publish Type | Author’s Original |
| Access Rights | open access |
| Date |
[Created] 2006
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| Source Identifier |
[DOI] 10.1016/j.camwa.2005.11.024
[ISSN] 0898-1221
[NCID] AA10866142
[DOI] http://dx.doi.org/10.1016/j.camwa.2005.11.024
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