Author: D.N.Prabhakar Murthy Publisher: Springer Science & Business ISBN: 1447164407 Category : Technology & Engineering Languages : en Pages : 405
Book Description
Serving to unify the existing literature on extended warranties, maintenance service contracts and lease contracts, this book also presents a unique perspective on the topic focussed on cost analysis and decision-making from the perspectives of the parties involved. Using a game theoretic approach together with mathematical modelling, results are presented in an integrated manner with key topics that require further research highlighted in order to serve as a starting point for researchers (engineers and statisticians) who are interested in doing further work in these areas. Designed to assist practitioners (managers, engineers, applied statisticians) who are involved with extended warranties, maintenance service contracts and lease contracts, the book provides them with the models and techniques needed for proper cost analysis and effective decision-making, The book is also suitable for use as a reference text in industrial engineering, applied statistics, operations research and management.
Author: Anisur Rahman Publisher: Springer ISBN: 3319162713 Category : Technology & Engineering Languages : en Pages : 124
Book Description
This volume presents concepts, policies and cost models for various long-term warranty and maintenance contracts. It offers several numerical examples for estimating costs to both the manufacturer and consumer. Long-term warranties and maintenance contracts are becoming increasingly popular, as these types of aftersales services provide assurance to consumers that they can enjoy long, reliable service, and protect them from defects and the potentially high costs of repairs. Studying long-term warranty and service contracts is important to manufacturers and consumers alike, as offering long-term warranty and maintenance contracts produce additional costs for manufacturers / service providers over the product’s service life. These costs must be factored into the price, or the manufacturer / dealer will incur losses instead of making a profit. On the other hand, the buyer / consumer needs to weigh the cost of maintaining it over its service life and to decide whether or not these policies are worth purchasing. There are a number of complexities involved in developing failure and cost models for these policies due to uncertainties concerning the service life, usage pattern, maintenance work and long-term costs of rectifications. Mathematical models for predicting failures and expected costs for various one-dimensional long-term warranty policies are developed at the system level and analyzed by taking into account the uncertainties in connection with longer coverage periods and the rectification costs over the warranty period. Failures and costs are modeled using stochastic techniques and illustrated by means of numerical examples for estimating costs to the manufacturer and consumer. Various rectification policies are proposed and analyzed. The models developed here can be used to aid in managerial decisions on purchasing products with long-term warranty policies and maintenance contracts or outsourcing maintenance.
Author: Kamonkan Laksana Publisher: ISBN: 9780549277538 Category : Languages : en Pages : 188
Book Description
Extended warranties provide "piece of mind" to a consumer in that product failures which occur after the base warranty expires are rectified at little or no cost. They also provide an additional source of revenue for manufacturers or third party providers. We analyze a number of extended warranty contracts which differ in design, including restrictions on deferrals and renewals. With the use of dynamic programming, we compute the optimal strategy for a consumer with perfect information and determine the optimal pricing policy for the provider given the consumer's risk characterization. We illustrate how profits can be dramatically increased by offering menus of extended warranty contracts, as opposed to stand alone contracts, with the use of integer programming. Extensions of this work utilize the dynamic programming approach to examine the consumer's behavior in light of technological change (improvement in the product's reliability) and competition for service contracts from multiple providers. This information provides input to an original equipment manufacturer as to how they should plan product improvement programs when refreshing designs. The investment cost, warranty period, and market conditions are crucial factors for determining the optimal design refresh program from a manufacturer's perspective.
Author: D.N.Prabhakar Murthy
Author: Anisur Rahman
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Author: Kamonkan Laksana