TY  - CHAP
AB  - Abstract Various types of warranty programs are offered for consumer products. The two most common are a linear pro-rata warranty or a lump-sum warranty, if product failure occurs prior to the specified warranty time. In this chapter we consider additional types of warranty programs that allow the consumer to purchase a one-time extended warranty in the event of no failure within the initial warranty period. For the extended period, warranty may be linearly pro-rated, starting at an amount that is lower than the initial purchase price. Alternatively, for the extended period, warranty may be a lump-sum amount, that is less than the initial warranty amount. Expressions for the expected costs under each of the programs are derived. Guidelines are provided for determining the parameters of each warranty program under relevant constraints. Sensitivity analysis is also conducted to determine the effect of the problem parameters on the expected warranty costs.
VL  - 16
SN  - 978-1-78190-956-0, 978-1-78190-957-7/0276-8976
DO  - 10.1108/S0276-8976(2013)0000016013
UR  - https://doi.org/10.1108/S0276-8976(2013)0000016013
AU  - Mitra Amitava
AU  - Patankar Jayprakash G.
PY  - 2013
Y1  - 2013/01/01
TI  - Expected costs for some one-time renewable warranty programs
T2  - Applications of Management Science
T3  - Applications of Management Science
PB  - Emerald Group Publishing Limited
SP  - 173
EP  - 192
Y2  - 2024/09/20
ER  -