Fully Renewing Combination Free Replacement and Pro-Rata Warranty Cost Assessment Using Monte Carlo Simulation
Abstract
Warranty is a powerful marketing instrument for the manufacturer and a good protection for both the manufacturer and the customer, but it always involves additional costs to the manufacturer. This paper deals with the warranty forecasting by estimating the future warranty returns in order to anticipate associated costs. The warranty prediction model is based on a Weibull analysis and a Monte Carlo simulation. Data gathered through the accelerated life-cycle analysis of 20 light bulb units of the new type were used as an input for the Weibull analysis to obtain the parameters needed for the simulation. MATLAB simulation algorithm was developed especially for this purpose. Warranty analysis was done for three variants of fully renewing combination free replacement and pro-rata policy and for several combinations of warranty period and free replacement period lengths. The results showed the relation between the parameters that define the policy and associated cost to the manufacturer. Pre...sented simulation algorithm proved to be a fast and reliable tool for warranty cost analysis.
Keywords:
Weibull analysis / warranty cost assessment / pro-rata warranty / Monte Carlo simulation / accelerated life-cycle analysisSource:
Proceedings - 18th ISSAT International Conference on Reliability and Quality in Design, 2012, 315-319Collections
Institution/Community
Mašinski fakultetTY - CONF AU - Stamenković, Dragan AU - Popović, Vladimir AU - Aleksendrić, Dragan PY - 2012 UR - https://machinery.mas.bg.ac.rs/handle/123456789/1516 AB - Warranty is a powerful marketing instrument for the manufacturer and a good protection for both the manufacturer and the customer, but it always involves additional costs to the manufacturer. This paper deals with the warranty forecasting by estimating the future warranty returns in order to anticipate associated costs. The warranty prediction model is based on a Weibull analysis and a Monte Carlo simulation. Data gathered through the accelerated life-cycle analysis of 20 light bulb units of the new type were used as an input for the Weibull analysis to obtain the parameters needed for the simulation. MATLAB simulation algorithm was developed especially for this purpose. Warranty analysis was done for three variants of fully renewing combination free replacement and pro-rata policy and for several combinations of warranty period and free replacement period lengths. The results showed the relation between the parameters that define the policy and associated cost to the manufacturer. Presented simulation algorithm proved to be a fast and reliable tool for warranty cost analysis. C3 - Proceedings - 18th ISSAT International Conference on Reliability and Quality in Design T1 - Fully Renewing Combination Free Replacement and Pro-Rata Warranty Cost Assessment Using Monte Carlo Simulation EP - 319 SP - 315 UR - https://hdl.handle.net/21.15107/rcub_machinery_1516 ER -
@conference{ author = "Stamenković, Dragan and Popović, Vladimir and Aleksendrić, Dragan", year = "2012", abstract = "Warranty is a powerful marketing instrument for the manufacturer and a good protection for both the manufacturer and the customer, but it always involves additional costs to the manufacturer. This paper deals with the warranty forecasting by estimating the future warranty returns in order to anticipate associated costs. The warranty prediction model is based on a Weibull analysis and a Monte Carlo simulation. Data gathered through the accelerated life-cycle analysis of 20 light bulb units of the new type were used as an input for the Weibull analysis to obtain the parameters needed for the simulation. MATLAB simulation algorithm was developed especially for this purpose. Warranty analysis was done for three variants of fully renewing combination free replacement and pro-rata policy and for several combinations of warranty period and free replacement period lengths. The results showed the relation between the parameters that define the policy and associated cost to the manufacturer. Presented simulation algorithm proved to be a fast and reliable tool for warranty cost analysis.", journal = "Proceedings - 18th ISSAT International Conference on Reliability and Quality in Design", title = "Fully Renewing Combination Free Replacement and Pro-Rata Warranty Cost Assessment Using Monte Carlo Simulation", pages = "319-315", url = "https://hdl.handle.net/21.15107/rcub_machinery_1516" }
Stamenković, D., Popović, V.,& Aleksendrić, D.. (2012). Fully Renewing Combination Free Replacement and Pro-Rata Warranty Cost Assessment Using Monte Carlo Simulation. in Proceedings - 18th ISSAT International Conference on Reliability and Quality in Design, 315-319. https://hdl.handle.net/21.15107/rcub_machinery_1516
Stamenković D, Popović V, Aleksendrić D. Fully Renewing Combination Free Replacement and Pro-Rata Warranty Cost Assessment Using Monte Carlo Simulation. in Proceedings - 18th ISSAT International Conference on Reliability and Quality in Design. 2012;:315-319. https://hdl.handle.net/21.15107/rcub_machinery_1516 .
Stamenković, Dragan, Popović, Vladimir, Aleksendrić, Dragan, "Fully Renewing Combination Free Replacement and Pro-Rata Warranty Cost Assessment Using Monte Carlo Simulation" in Proceedings - 18th ISSAT International Conference on Reliability and Quality in Design (2012):315-319, https://hdl.handle.net/21.15107/rcub_machinery_1516 .