Abstract
In this chapter, we study unit warranties, under which, upon failure of the item outside warranty coverage, the user is not obligated to purchase a new unit from the same manufacturer. These arrangements are contrasted with perpetual warranties that we consider in the next chapter. While perpetual warranties give rise to processes and measures of time, over a finite or infinite horizon, that may involve a number of warranty cycles, here we investigate the dynamics of a single warranty cycle. We are interested in the cost, revenue and profit measures attributable to a cycle. We consider non-renewing, freereplacement warranties, and renewing, pro-rata warranties. We also study a class of combination warranties, defined by a free-replacement cycle, followed by a pro-rata cycle, and some policy issues related to their design.
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© 1998 Springer Science+Business Media New York
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Sahin, I., Polatoglu, H. (1998). Unit Warranties. In: Quality, Warranty and Preventive Maintenance. International Series in Operations Research & Management Science, vol 15. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-5557-5_3
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DOI: https://doi.org/10.1007/978-1-4615-5557-5_3
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4613-7541-8
Online ISBN: 978-1-4615-5557-5
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