Cost analysis of two-attribute warranty policies based on the product usage rate
Document Type
Article
Publication Date
1-1-1999
Abstract
In the so-called two-attribute warranty policy, two types of warranty criteria, such as the age and mileage of an automobile, are employed simultaneously to determine the eligibility of a warranty claim. We propose in the paper several decision models that estimate the expected total cost incurred under various types of two-attribute warranty policies. We also perform a sensitivity analysis to study the effects of several model parameters, such as the discount rate, the product usage rate, and the warranty terms, on the total warranty cost.
Publication Source (Journal or Book title)
IEEE Transactions on Engineering Management
First Page
201
Last Page
209
Recommended Citation
Chun, Y., & Tang, K. (1999). Cost analysis of two-attribute warranty policies based on the product usage rate. IEEE Transactions on Engineering Management, 46 (2), 201-209. https://doi.org/10.1109/17.759149