The Research Of Two-dimensional Warranty Strategy

The product’s price is determined not only by production costs but also by service costs. At the same time, the warranty cost is decided by the length of the warranty period and warranty strategy. The appropriate warranty strategy can get the maximum economic benefit for manufacturers, and also can protect the right and interests of consumers.Firstly, the paper introduces the background and research significance of warranty strategy. Based on the literature review in the field, it specifies the concept of warranty, analyzes the types of warranty polies appropriate to different situations. Besides these, the paper introduces the theories of reliability and renewal process in order to establish and analyze the warranty model.Afterwards, this paper researches the two-dimensional warranty strategy, which the car’s warranty after sales as the research prototypes. It establishes a model of the product two-dimensional warranty strategy. The warranty period is a rectangular areaΩ=[0,Wt]×[O,Wu],Wt is the maximum warranty period, Wu is the maximum warranty usage limit. The product has two types of failures during operation, it produces the unrepairable failure with probability p and the repairable failure with probability1-p. This warranty period includes two phases, Ω1=[0,Vt]×[0,Vu](?)Ω andΩ2=Ω-Ω1. No matter what kind of failure inΩ1, we use the same type of products instead of the failure product, while in Ω2, we use minimal repair for the repairable faults and we use the same type of products instead of the failure product for the unrepairable faults. Assuming, there is a liner proportional relationship between the use time T and the usage U of product. Using the supplementary variable method and the probability analysis method to study and discuss the model, we can calculate the number of replace warranty and repair warranty, and warranty cost in each case, and calculate the expected warranty cost.Finally, we can optimize the warranty policy through numerical examples and select the best warranty policy.