Two-dimensional warranty repair strategy based on minimal and complete repairs |
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Authors: | S. Chukova M.R. Johnston |
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Affiliation: | aSchool of Mathematics, Statistics and Computer Science, Victoria University of Wellington, New Zealand |
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Abstract: | For repairable products, the warrantor has options in choosing the degree of repair applied to an item that has failed within the warranty period. We focus on a particular warranty repair strategy, related to the degree of the warranty repair, for non-renewing, two-dimensional, free of charge to the consumer warranty policy. We consider a rectangular warranty region and divide it into three disjoint subregions, so that each of these subregions has a preassigned degree of repair for a faulty item. Our main goal is to determine the subregions, so that the associated expected warranty servicing cost per item sold is minimised. A comparison between our strategy and previously studied, more restrictive, ones is provided. |
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Keywords: | Warranty Warranty repair strategy Expected warranty servicing costs |
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