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Warranty Economic Decision Models: A Summary and Some Suggested Directions for Future Research

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  • Marlin U. Thomas

    (School of Industrial Engineering, Purdue University, West Lafayette, Indiana 47907)

  • Sridevi S. Rao

    (School of Industrial Engineering, Purdue University, West Lafayette, Indiana 47907)

Abstract

Product guarantees or warranties have been around for generations, but formal approaches for establishing and examining warranties have been considered only during the past 20 years. A review of the literature on warranty models and analysis methods is provided, along with some suggestions for further research.

Suggested Citation

  • Marlin U. Thomas & Sridevi S. Rao, 1999. "Warranty Economic Decision Models: A Summary and Some Suggested Directions for Future Research," Operations Research, INFORMS, vol. 47(6), pages 807-820, December.
    • Handle: RePEc:inm:oropre:v:47:y:1999:i:6:p:807-820
    DOI: 10.1287/opre.47.6.807
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    3. M.A. Wortman & Debra A. Elkins, 2005. "Stochastic modeling for computational warranty analysis," Naval Research Logistics (NRL), John Wiley & Sons, vol. 52(3), pages 224-231, April.
    4. SamatlI-Pa, Glay & Taner, Mehmet R., 2009. "The role of repair strategy in warranty cost minimization: An investigation via quasi-renewal processes," European Journal of Operational Research, Elsevier, vol. 197(2), pages 632-641, September.
    5. Liu, Bin & Shen, Lijuan & Xu, Jianyu & Zhao, Xiujie, 2020. "A complimentary extended warranty: Profit analysis and pricing strategy," International Journal of Production Economics, Elsevier, vol. 229(C).
    6. Haruvy, Ernan E. & Li, Tao & Sethi, Suresh P., 2012. "Two-stage pricing for custom-made products," European Journal of Operational Research, Elsevier, vol. 219(2), pages 405-414.
    7. Lu, Zhen & Shang, Jennifer, 2019. "Warranty mechanism for pre-owned tech products: Collaboration between E-tailers and online warranty provider," International Journal of Production Economics, Elsevier, vol. 211(C), pages 119-131.
    8. Lin, Yizhong & Leung, Janny M.Y. & Zhang, Lianmin & Gu, Jia-Wen, 2020. "Single-item repairable inventory system with stochastic new and warranty demands," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    9. Vanajah Siva, 2012. "Improvement in Product Development: Use of back-end data to support upstream efforts of Robust Design Methodology," Quality Innovation Prosperity, Technical University of Košice, Department of integrated management, vol. 16(2).
    10. Wu, Shaomin & Li, Huiqing, 2007. "Warranty cost analysis for products with a dormant state," European Journal of Operational Research, Elsevier, vol. 182(3), pages 1285-1293, November.
    11. Wu, Shaomin, 2011. "Warranty claim analysis considering human factors," Reliability Engineering and System Safety, Elsevier, vol. 96(1), pages 131-138.
    12. Xia, Yusen & Gilbert, Stephen M., 2007. "Strategic interactions between channel structure and demand enhancing services," European Journal of Operational Research, Elsevier, vol. 181(1), pages 252-265, August.
    13. Moura, Márcio das Chagas & Santana, João Mateus & Droguett, Enrique López & Lins, Isis Didier & Guedes, Bruno Nunes, 2017. "Analysis of extended warranties for medical equipment: A Stackelberg game model using priority queues," Reliability Engineering and System Safety, Elsevier, vol. 168(C), pages 338-354.
    14. Xiaolin Wang & Wei Xie, 2018. "Two-dimensional warranty: A literature review," Journal of Risk and Reliability, , vol. 232(3), pages 284-307, June.
    15. Bhargava, Hemant K. & Sun, Daewon, 2008. "Pricing under quality of service uncertainty: Market segmentation via statistical QoS guarantees," European Journal of Operational Research, Elsevier, vol. 191(3), pages 1189-1204, December.
    16. Kirkizoğlu, Zeynep & Karaer, Özgen, 2022. "After-sales service and warranty decisions of a durable goods manufacturer," Omega, Elsevier, vol. 113(C).

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