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Warranty cost analysis: Increasing warranty repair times
Author(s) -
Marshall Sarah,
Arnold Richard,
Chukova Stefanka,
Hayakawa Yu
Publication year - 2018
Publication title -
applied stochastic models in business and industry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.413
H-Index - 40
eISSN - 1526-4025
pISSN - 1524-1904
DOI - 10.1002/asmb.2323
Subject(s) - warranty , process (computing) , computer science , time horizon , automotive industry , reliability engineering , operations management , business , economics , engineering , finance , political science , law , aerospace engineering , operating system
In this study, we model the warranty servicing costs under nonrenewing and renewing free repair warranties. We assume nonzero increasing repair times with the warranty cost depending on the length of the repair time. An increasing geometric process is used to model the consecutive repair times. We introduce the generalised alternating renewal process, which is an alternating process with cycles consisting of an item's operational time followed by the corresponding repair time. We derive analytical results for a generalised alternating renewal process with a finite time horizon and use them to evaluate the warranty costs over the warranty period and over the life cycle of the product under the nonrenewing free repair warranty and renewing free repair warranty. Properties of the model are demonstrated through a simulation study and through the application to warranty claims data from an automotive manufacturer.