A generalized warranty policy with the minimal repair cost limit is proposed. If an item fails before warranty period W, the repair cost is estimated and minimal repair is then undertaken if the estimated cost is less than a predetermined limit L ; ot...
A generalized warranty policy with the minimal repair cost limit is proposed. If an item fails before warranty period W, the repair cost is estimated and minimal repair is then undertaken if the estimated cost is less than a predetermined limit L ; otherwise, it is replaced and renewed.
The optimal warranty period, W that minimizes the long-run average cost to the manufacturer is obtained.