Warranty Cost Models for a Second-Hand Products

A warranty cost analysis for new products have received a lot of attention. In contrast, there is hardly any literature on similar analysis for second-hand products. The market of second-hand products has been increasing and along with that the importance of warranties for second-hand products has also been increasing. However, warranty policies similar to new products are not economically acceptable to dealers. One needs to formulate new warranty policies and models to estimate expected warranty costs for second-hand products. This paper proposes one-dimensional cost sharing warranty policies and develops models at system level to analysis warranty cost for second-hand products sold with these policies.