A performance-based warranty for products subject to competing hard and soft failures

Wang, Xiaolin; Liu, Bin; Zhao, Xiujie

doi:10.1016/j.ijpe.2020.107974

Cited by 39 publications

(4 citation statements)

References 44 publications

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“…Heidary and Aghaie [16] studied the impact of consumer's loss aversion on the decision-making of extended warranty. Wang et al [49] studied the impact of three different extended warranty strategies on the benefits of members in the forward supply chain based on product performance differences. Bian et al [2] studied the impact of traditional and new extended warranty strategies on the benefits of supply chain, and worked out the best pricing strategy.…”

Section: Extended Warranty Servicementioning

confidence: 99%

Decision and coordination analysis of extended warranty service in a remanufacturing closed-loop supply chain with dual price sensitivity under different channel power structures

et al. 2022

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This paper studies the impact of dual price sensitivity (product price sensitivity and extended warranty service price sensitivity) on the decision of the closed-loop supply chain(CLSC) where manufacturers are responsible for recycling and providing extended warranty service under different channel power structures. First, the dynamic game model is used to describe the three channel power structure models of centralized (C), Manufacturer-led Stackelberg (MS), and Retailer-led Stackelberg (RS); then mathematical optimization and reverse induction are used to derive supply chain decision-making and performance levels. On this basis, we further designed a contract to coordinate the supply chain, and use numerical examples to analyze and verify the impact of remanufacturing cost savings and dual price sensitivity on the supply chain system. Research shows that channel power structures, remanufacturing cost savings and dual price sensitivity all have an important impact on the supply chain and corporate profits.

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Section: Extended Warranty Servicementioning

confidence: 99%

Decision and coordination analysis of extended warranty service in a remanufacturing closed-loop supply chain with dual price sensitivity under different channel power structures

et al. 2022

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“…Proper forecasting of warranty claims enables better warranty financial reserves, smarter manufacturing of spare parts, a better estimate for the added cost from warranty, and efficient maintenance scheduling. [1][2][3][4] Forecasting warranty claims is challenging, especially in the presence of external dynamic factors like seasonality, delays in service and reporting, heterogeneous manufacturing quality from different plants, and compounded failures.…”

Section: Introductionmentioning

confidence: 99%

“…The forecasting process concerns multiple key performance indicators (KPIs)/warranty metrics, among which the most important ones are the number of repairs per unit (RPU) and cost per unit (CPU) for specific time‐in‐service (TIS) values. Proper forecasting of warranty claims enables better warranty financial reserves, smarter manufacturing of spare parts, a better estimate for the added cost from warranty, and efficient maintenance scheduling 1–4 …”

Section: Introductionmentioning

confidence: 99%

Data‐driven framework for warranty claims forecasting with an application for automotive components

Babakmehr,

Baumanns,

Chehade

et al. 2023

Engineering Reports

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Automakers spend billions of dollars annually towards warranty costs, and warranty reduction is typically high on their priorities. An accurate understanding of warranty performance plays a critical role in controlling and steering the business, and it is of crucial importance to fully understand the actual situation as well as be able to predict future performance, for example, to set up adequate financial reserves or to prioritize improvement actions based on expected forthcoming claims. Data maturation, a major nuisance causing changes in performance metrics with observation time, is one of the factors complicating warranty data analysis and typically leads to over‐optimistic conclusions. In this paper, we propose a sequence of steps, decomposing and addressing the main reasons causing data maturation. We first compensate for reporting delay effects using a Cox regression model. For the compensation of heterogeneous build quality, sales delay, and warranty expiration rushes, a constrained quadratic optimization approach is presented, and finally, a sales pattern forecast is provided to properly weigh adjusted individual warranty key performance indicators. The results are shown to dramatically improve prior modeling approaches.

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“…For example, Ref. [18] modeled a performance-based warranty by combining a stochastic degradation process and a distribution function.…”

Section: Introductionmentioning

confidence: 99%

A Bivariate Optimal Random Replacement Model for the Warranted Product with Job Cycles

Shang

et al. 2022

Mathematics

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A monitoring system (MS) has been used to monitor products’ job cycles. It is indicated that by incorporating the job cycle into the product’s life cycle, warrantors can devise novel warranty models and consumers can define and model random maintenances sustaining the reliability of the product through warranty. In this study, by incorporating limited job cycles and a refund into the traditional free repair warranty, a two-dimensional free repair warranty with a refund (2DFRW-R) is devised for guaranteeing the product reliability to consumers. Under the condition that 2DFRW-R is planned to guarantee product reliability, a bivariate random periodic replacement (BRPR) (i.e., a random periodic replacement where the accomplishment of the Nth job cycle and the replacement time T are designed as replacement limits) is modeled to sustain the post-warranty reliability from the point of view of the consumer. From the point of view of the warrantor, the warranty cost related to 2DFRW-R is derived, and the characteristics of 2DFRW-R are explored. From the point of view of consumers, the expected cost rate related to BRPR is constructed, and the existence and uniqueness of the optimal BRPR are summarized as well. By discussing parameters, several special cases are derived. The characteristics of the proposed models are analyzed in numerical examples.

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A performance-based warranty for products subject to competing hard and soft failures

Cited by 39 publications

References 44 publications

Decision and coordination analysis of extended warranty service in a remanufacturing closed-loop supply chain with dual price sensitivity under different channel power structures

Decision and coordination analysis of extended warranty service in a remanufacturing closed-loop supply chain with dual price sensitivity under different channel power structures

Data‐driven framework for warranty claims forecasting with an application for automotive components

A Bivariate Optimal Random Replacement Model for the Warranted Product with Job Cycles

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