A new warranty costing model

✍ Scribed by D.N.P. Murthy; Ervin Y. Rodin

• Publisher: Elsevier Science
• Year: 1990
• Tongue: English
• Weight: 776 KB
• Volume: 13
• Category: Article
• ISSN: 0895-7177
• DOI: 10.1016/0895-7177(90)90078-2

✦ Synopsis

Most consumer durable products are used intermittently and the usage is best modelled as a point process in time. Also, the failure of an item is a function of the number of times the item has been used rather than its age. As a result, the item failure is better characterized through a discrete distribution. In this paper we develop a new model for item usage and item failure based on the above characterization and obtain the expected cost of servicing warranty per unit when the product is sold with warranty.