An Approach to Optimization of Warranty Policy – a Case Study
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Serbian Maintenance Association DOTS / European Federation of national Maintenance Societies EFNMS
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Product development risk increases more and more every day and one of the factors that affect this risk is product warranty. Warranty is a powerful marketing instrument for the manufacturer and at the same time a good protection for both the manufacturer and the customer, but it always involves additional costs to the manufacturer. These costs depend on the product reliability and the warranty parameters. This paper deals with the optimization of these parameters for known product failure distribution to reduce the warranty costs to the manufacturer while retaining the promotional function of the warranty. Combination free replacement and pro‐rata warranty policy is chosen as a model and the length of free replacement and pro‐rata policy periods are varied, as well as the coefficients that define the pro‐rata cost function. Warranty costs are obtained in two ways ‐ by using analytical equations and by simulation. The obtained results are shown and discussed and some concluding remarks ...are given.
Keywords:
free replacement warranty / pro‐rata warranty / combination / cost / optimizationSource:
Euromaintenance 2012, 2012, 24-32Publisher:
- Serbian Maintenance Association DOTS / European Federation of national Maintenance Societies EFNMS
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Mašinski fakultetTY - CONF AU - Stamenković, Dragan AU - Popović, Vladimir AU - Spasojević Brkić, Vesna PY - 2012 UR - https://machinery.mas.bg.ac.rs/handle/123456789/6667 AB - Product development risk increases more and more every day and one of the factors that affect this risk is product warranty. Warranty is a powerful marketing instrument for the manufacturer and at the same time a good protection for both the manufacturer and the customer, but it always involves additional costs to the manufacturer. These costs depend on the product reliability and the warranty parameters. This paper deals with the optimization of these parameters for known product failure distribution to reduce the warranty costs to the manufacturer while retaining the promotional function of the warranty. Combination free replacement and pro‐rata warranty policy is chosen as a model and the length of free replacement and pro‐rata policy periods are varied, as well as the coefficients that define the pro‐rata cost function. Warranty costs are obtained in two ways ‐ by using analytical equations and by simulation. The obtained results are shown and discussed and some concluding remarks are given. PB - Serbian Maintenance Association DOTS / European Federation of national Maintenance Societies EFNMS C3 - Euromaintenance 2012 T1 - An Approach to Optimization of Warranty Policy – a Case Study EP - 32 SP - 24 UR - https://hdl.handle.net/21.15107/rcub_machinery_6667 ER -
@conference{ author = "Stamenković, Dragan and Popović, Vladimir and Spasojević Brkić, Vesna", year = "2012", abstract = "Product development risk increases more and more every day and one of the factors that affect this risk is product warranty. Warranty is a powerful marketing instrument for the manufacturer and at the same time a good protection for both the manufacturer and the customer, but it always involves additional costs to the manufacturer. These costs depend on the product reliability and the warranty parameters. This paper deals with the optimization of these parameters for known product failure distribution to reduce the warranty costs to the manufacturer while retaining the promotional function of the warranty. Combination free replacement and pro‐rata warranty policy is chosen as a model and the length of free replacement and pro‐rata policy periods are varied, as well as the coefficients that define the pro‐rata cost function. Warranty costs are obtained in two ways ‐ by using analytical equations and by simulation. The obtained results are shown and discussed and some concluding remarks are given.", publisher = "Serbian Maintenance Association DOTS / European Federation of national Maintenance Societies EFNMS", journal = "Euromaintenance 2012", title = "An Approach to Optimization of Warranty Policy – a Case Study", pages = "32-24", url = "https://hdl.handle.net/21.15107/rcub_machinery_6667" }
Stamenković, D., Popović, V.,& Spasojević Brkić, V.. (2012). An Approach to Optimization of Warranty Policy – a Case Study. in Euromaintenance 2012 Serbian Maintenance Association DOTS / European Federation of national Maintenance Societies EFNMS., 24-32. https://hdl.handle.net/21.15107/rcub_machinery_6667
Stamenković D, Popović V, Spasojević Brkić V. An Approach to Optimization of Warranty Policy – a Case Study. in Euromaintenance 2012. 2012;:24-32. https://hdl.handle.net/21.15107/rcub_machinery_6667 .
Stamenković, Dragan, Popović, Vladimir, Spasojević Brkić, Vesna, "An Approach to Optimization of Warranty Policy – a Case Study" in Euromaintenance 2012 (2012):24-32, https://hdl.handle.net/21.15107/rcub_machinery_6667 .