Warranty Cost And Length Under Warranty Policies

The product's price is determined not only by production costs but also by servicecosts. Warranty is the main point of service of non-price competition. In thisdissertation, we investigate in depth the process of warranty from manufacturers'point of view and establish math model of the warranty cost so that we can get theoptimal warranty length and the minimal warranty cost.Firstly, this paper studies the basic theories of warranty cost. Based on the literaturereview in the field, it specifies the concept of warranty, analyzes the types ofwarranty polices appropriate to different situations. Besides these, the paperintroduces the theories of reliability and renewal process in order to explainefficiently the product life cycle and the procedure of warranty.Afterwards, this paper concentrates on the research of a repairable system consistingof one component. Aiming at two cases of the system after repair which is whether"as good as new" or not, it establishes some models under different warranty policiesand the distributions of failure function, evaluates these models.At last, the paper studies several system warranty cost models of a renewablerisk-free for multi-component products with system structure such as series, parallel,series-parallel, and parallel-series.