Modelling And Optimization Of Warranty Based On Regulations

Product warranty is the key factor to after-sales service.A reasonable warranty strategy can not only improve product performance,but also reduce warranty costs.According to the Three Guarantees and the “Lemon Law” of warranty regulations,two warranty models are built,warranty strategies are proposed and decision analysis are also made in this paper.Modeling and optimization of three-stage one-dimensional condition-based warranty.The warranty period of a three-state deteriorating product is divided into three phases,namely,the Three Guarantees period,the condition-based warranty period,and the minor repair period.According to the Three Guarantees Law,if a product has quality problems within a certain period of time,the manufacturer will provide free repair,replacement or return service.Based on this rule,it is assumed that when the product fails during the Three Guarantees period,regardless of the state before the failure,the product will be replaced by a new one.During the conditionbased warranty period,the product will be replaced or repaired minimally depending on the status of the product before the failure and the remaining warranty time,if it fails.During the minor repair period,if a product fails,minimal repair will be performed,no matter what state it is in before the failure.During the warranty period,the repair costs incurred are borne by the manufacturer.Based on the above regulations,this paper takes the remaining warranty time threshold as the decision variable,regards warranty cost as the objective function,and carries on optimization analysis.The superiority and rationality of the model are verified by comparison models and numerical examples.Modeling and optimization for a two-dimensional extended warranty considering the repair time threshold.According to the “Lemon Law”,if the maintenance of a product can not be completed within a preseted time,it must be replaced by a new one.Based on this regulation,a two-dimensional warranty policy is adopted for the product within the basic warranty period.Under this strategy,the product will be repaired minimally.If the repaired is not finished within the repair time threshold,the product will be replaced and the warranty period will be renewed,During the extended warranty period,minor repair are performed when the product fails.Based on the above regulations,this paper obtains the optimal length of the extended warranty period that minimizes the expected cost rate over the whole warranty period,from the perspective of consumers and manufacturers,respectively.the applicability of the model is illustrated by numerical examples.Decision analysis in this paper can not only protect the legitimate rights and interests of consumers,but also reduce the manufacturer's warranty cost,and give a base for warranty strategies.