Present Worth of Service Cost for Consumer Product Warranty

1 December 1984

journal article
Published by Institute of Electrical and Electronics Engineers (IEEE) in IEEE Transactions on Reliability

Vol. R-33 (5) , 424-426
https://doi.org/10.1109/tr.1984.5221889

Abstract

Under a warranty service contract, the manufacturer of a consumer product agrees to repair and maintain the product over a certain stated period of time for a fee from the customer. The manufacturer offering such a service contract is faced with several policy design and planning decisions. Mathematical models of product failures and of future repair costs are basic to the formulation of these decision problems. We assume Weibull time-to-failure distribution for analytic amenability and reasonable realism A repair returns the product to the average condition for a working unit of its age (bad as old). Simple stochastic models of sequences of failures and their costs are developed. Expressions are obtained for the s-expectation of the present worth of the future repair costs.

Keywords

This publication has 3 references indexed in Scilit:

Cost limit replacement policy under minimal repair
Microelectronics Reliability, 1983
Optimal Number of Minimal Repairs before Replacement
IEEE Transactions on Reliability, 1979
Future costs of service contracts for consumer durable goods
A I I E Transactions, 1978