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Some aspects in estimating warranty and post‐warranty repair demands

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  • Wei Xie
  • Haitao Liao

Abstract

When customers buy a product, they are often eligible for free repairs for a certain warranty period. In this article, we study some important aspects, which are often overlooked in the literature but are of interest to the manufacturer, in estimating both warranty and post‐warranty repair demands. We consider that the installed base of the product (i.e., the number of units of the product actually in use) varies with time due to both new sales and units being taken out of service. When estimating warranty and post‐warranty repair demands, we explicitly address the fact that customers may not always request repairs for failed units. For the case where the product failure time distribution is exponential, we derive the closed‐form expressions for both types of repair demands of a single unit and of the time‐varying installed base. The insights into some risk‐related quantities are also presented. Furthermore, the proposed model is extended by considering delayed warranty claims that are frequently seen in practice. Numerical examples illustrate that understanding both types of repair demands and the related decision variables is important for managing the obligatory and profitable repair services. © 2013 Wiley Periodicals, Inc. Naval Research Logistics 60: 499–511, 2013

Suggested Citation

  • Wei Xie & Haitao Liao, 2013. "Some aspects in estimating warranty and post‐warranty repair demands," Naval Research Logistics (NRL), John Wiley & Sons, vol. 60(6), pages 499-511, September.
    • Handle: RePEc:wly:navres:v:60:y:2013:i:6:p:499-511
    DOI: 10.1002/nav.21548
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    References listed on IDEAS

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    1. Wu, Shaomin, 2011. "Warranty claim analysis considering human factors," Reliability Engineering and System Safety, Elsevier, vol. 96(1), pages 131-138.
    2. 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.
    3. Jayprakash G. Patankar & Amitava Mitra, 1995. "Effects of Warranty Execution on Warranty Reserve Costs," Management Science, INFORMS, vol. 41(3), pages 395-400, March.
    4. Gerner, Jennifer L & Bryant, W Keith, 1980. "The Demand for Repair Service during Warranty," The Journal of Business, University of Chicago Press, vol. 53(4), pages 397-414, October.
    5. Wu, Chin-Chun & Lin, Pei-Chun & Chou, Chao-Yu, 2006. "Determination of price and warranty length for a normal lifetime distributed product," International Journal of Production Economics, Elsevier, vol. 102(1), pages 95-107, July.
    6. Yeo, Wee Meng & Yuan, Xue-Ming, 2009. "Optimal warranty policies for systems with imperfect repair," European Journal of Operational Research, Elsevier, vol. 199(1), pages 187-197, November.
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    Cited by:

    1. Tong Peng & Liu Chunling, 2020. "Designing differential service strategy for two-dimensional warranty based on warranty claim data under consumer-side modularisation," Journal of Risk and Reliability, , vol. 234(3), pages 550-561, June.
    2. Xiaolin Wang & Wei Xie, 2018. "Two-dimensional warranty: A literature review," Journal of Risk and Reliability, , vol. 232(3), pages 284-307, June.
    3. Hashemi, M. & Asadi, M. & Tavangar, M., 2022. "Optimal maintenance strategies for coherent systems: A warranty dependent approach," Reliability Engineering and System Safety, Elsevier, vol. 217(C).
    4. Huang, Yeu-Shiang & Fang, Chih-Chiang & Lu, Chang-Ming & (Bill) Tseng, Tzu-Liang, 2022. "Optimal Warranty Policy for Consumer Electronics with Dependent Competing Failure Processes," Reliability Engineering and System Safety, Elsevier, vol. 222(C).

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