Investigating the effects of operators on warranty cost under sales delay conditions

Abstract

Purpose Due to the fact that the non-standard products, being used by customers, may cause failures in products with sales delays, which naturally affect the warranty policy. Thus, it seems to be necessary to study these two concepts simultaneously. The paper aims to discuss these issues. Design/methodology/approach In this paper, a model is developed for estimating the expected warranty costs under sales delay conditions when two operator costs (failing but not reported and non-failing but reported) are included. Findings The proposed model is validated using a numerical example for a two types of intermittent and fatal failures occur under a non-renewing warranty policy. Originality/value Sales delay is the time interval between the date of production and the date of sale. Most reported literature on warranty claims data analysis related to sales delay have mainly focussed on estimating the probability distribution of the sales delay.