Note—Determination of Warranty Reserves: An Extension
- 1 August 1976
- journal article
- Published by Institute for Operations Research and the Management Sciences (INFORMS) in Management Science
- Vol. 22 (12) , 1391-1394
- https://doi.org/10.1287/mnsc.22.12.1391
Abstract
This paper extends a previously accepted model, used to estimate the warranty reserves required for nonrepayable products, by discounting future warranty costs to their present value, and by adjusting for expected changes in the general price level. The estimation equations are derived and their implications are discussed.Keywords
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