Warranty Economic Decision Models: A Summary and Some Suggested Directions for Future Research

Abstract

Product guarantees or warranties have been around for generations, but formal approaches for establishing and examining warranties have been considered only during the past 20 years. A review of the literature on warranty models and analysis methods is provided, along with some suggestions for further research.

Improvement in Product Development: Use of back-end data to support upstream efforts of Robust Design Methodology

“…This presents an opportunity to create a proactive mechanism in order to react quickly to deviations in product performance through the implementation of a field feedback loop (Magniez et al, 2009). Such a mechanism could be designed based on the customer claims database to measure actual field reliability of products to generate valuable information to be fed back into the design process (Lawless, 1998;Meeker and Hamada, 1997;Meeker and Escobar, 2004;Thomas and Rao, 1999).…”

Developing a benchmarking approach to evaluate the state of warranty in automakers: A case study of two biggest automakers in Middle East

“…This means that only high quality product manufacturers attempt to provide long-term warranty and lowquality producers cannot offer long-term warranty because they do not have the capability to offset losses caused by failures of continuous product or services. In other words, when the producers of high quality products reduce their expenditures warranty will not mean as an indication of the reliability (Chukova et al, 1993;Thomas & Rao, 1999;Wu et al, 2006). This is called the stretch balance where manufacturing enterprises of the high and lower quality producers, both recognize warranty as a sign of product reliability.…”

Stochastic modeling for computational warranty analysis

“…Murthy and Blischke [5] review failure, repair, and cost analysis models based on consumer, manufacturer, and public policy decision-maker perspectives. Thomas and Rao [6] summarize warranty economic models, and suggest future directions for warrant research. a random time for products that are released or sold in batches.…”