A Study On The Warranty Policy Of Remanufactured Product

With the development of manufacturing industry, questions about safety, environmental protection, resources caused by the discard production and the future of the remanufacturing industry have got many emphases from many areas. The remanufactured product accessing in the market has got concerns from many countries, firms and customers. And what the remanufacturing entrepreneur are facing with are more critical customers and more pressures in the market. So the competitions among remanufacturing firms and the competitions between remanufacturing firms and non-remanufacturing firms are more and more diversified and intense. Remanufactured product comes from a series remanufacturing processes of disassembling, cleaning, testing, necessary upgrading, reassembling and so on. During these processes new materials or parts may be added to the remanufactured product, but the main parts come from the returned product. Remanufactured product warranty policy aiming at the remanufactured product is the warranty obligations that the remanufactured firms or other warranty parts have about the sold remanufactured product in the stated time. As the promise of the firms about their product quality and appended services with the sold product, product warranty has become a powerful tool for the all the firms to improve their competition and exploit new market.The paper gave the theories about the product warranty and remanufactured product first, including the concept and the category of product warranty, the policies about the remanufacturing and the remanufactured product, and the research status of the product warranty and the remanufacturing, which are the foundation of the warranty policy for the remanufactured product. Then the paper give the main effects of the warranty policy for the remanufactured product, including the reliability of the remanufactured product, the life cycle of the remanufactured product and the warranty policies. The reliability of the remanufactured product is mainly affected by the design of the remanufactured product, the quality variations during the process of the reassembling and the component non-conformance. The failure rate of the remanufactured product is the result of the design, reassembly and the parts of the remanufactured product. The effective usage period stipulates the deadline of the warranty part for the remanufactured product, and the warranty part only take the obligations of warranty cost and maintaining activities in the ruled time. As the important facet of making the warranty policies for the remanufactured product, the life cycle of the remanufactured product is declined according to the Long Time Product Warranty (LTPW) .And then the paper gives the four different remanufactured product warranty policies according to the characters of the remanufactured product in the facet of the warranty cost, giving the details of calculating the warranty of remanufactured product. After introducing the characters of the remanufactured product and the warranty policies for the remanufactured product, the paper modeling the warranty policies of the remanufactured product and pull off the main factors in the models of the warranty cost under the different warranty policies. At last, the proposed remanufactured product warranty strategy was applied to a case study and was analyzed among the four different warranty strategies and the impact of different related factors in the four different strategies. From the case study we can get the information about how the four different remanufactured product warranty policies can be applied with different remanufactured product and the most important related factors, so that we can sort the different warranty policies firm the related factors according to the characters of the remanufactured product to minimize the warranty cost while protecting the interests of the customer.