WARRANTY SERVICING WITH A BROWN–PROSCHAN REPAIR OPTION

Abstract

Reducing warranty servicing costs are of great interest to product manufacturers or sellers who are contractually bound to provide post-sales support, up to a specified warranty period, usually in the form of some remedial action that restores a failed item to a functioning condition. Here, in the spirit of Jack et al. (2009) strategy based on partitioning the effective warranty period into three intervals, we consider and analyze the cost of a new two-dimensional warranty servicing strategy, that probabilistically exercises a choice between a replacement and a minimal repair to rectify the first failure if any, in the middle interval. The behavior of the expected cost is numerical illustration with Weibull failure model.