• Journal of Korean Society of Industrial and Systems Engineering
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• v.24 no.64
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• pp.29-38
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• 2001

Most warranty studies assume that the usage intensity is the same for all buyers. However, in real life the usage intensity varies across the population of buyers. In the general case, one can divide the population into $\kappa$ categories. This has implications for manufacturers of products. Should a manufacturer produce one product and offer different warranties for the $\kappa$ groups or produce different products (one for each group) and offer the same warranty. A warranty cost analysis is needed to choose between these options. The analysis complicated by factors such as adverse selection , buyers attitude to risk and the price structure. In this paper we develop models to study the expected warranty cost for products with free replacement warranty with varying usage intensity. Numerical examples are presented.

• International Journal of Reliability and Applications
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• v.5 no.2
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• pp.47-57
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• 2004

The market for used products is becoming more competitive and dealers of used products use warranty to promote sales as well as to provide assurance to customers. Offering warranty results in additional costs associated with warranty servicing. This cost can be reduced through actions such as overhaul and upgrade that improves the reliability of the item. This is worthwhile only if the cost of improvement is less than the reduction in the warranty servicing cost. This paper deals with two models to decide on the reliability improvement strategies for used items sold with FRW policy.

• Journal of the Korean Data and Information Science Society
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• v.13 no.1
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• pp.55-65
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• 2002

In this paper we present a Bayesian approach for determining an optimal maintenance policy following the expiration of warranty for a repairable system. We consider two types of warranty policies : non-renewing free replacement warranty (NFRW) and non-renewing pro-rata warranty (NPRW). The mathematical formula of the expected cost rate per unit time is obtained for NFRW and NPRW, respectively. When the failure time is Weibull distribution with uncertain parameters, a Bayesian approach is established to formally express and update the uncertain parameters for determining an optimal maintenance policy. We illustrate the use of our approach with simulated data.

• 한국데이터정보과학회:학술대회논문집
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• 2001.10a
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• pp.34-41
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• 2001

본 논문에서는 비재생보증을 갖는 수리 가능한 시스템에 대한 베이즈 관점에서의 최적의 교체정책을 제안한다. 비재생무료보증(non-renewing free-replacement warranty : NFRW)과 비재생비례보증(non-renewing pro-rata warranty : NPRW)의 두 가지 경우에 대하여 각각 기스템의 고장시간이 와이블분포일 때 베이즈 관점에서의 단위시간당 기대비용을 최소화하는 최적의 교체정책과 순응적 교체정책에 대하여 설명한다.

• Journal of the Korean Operations Research and Management Science Society
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• v.20 no.1
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• pp.55-62
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• 1995

This paper compares the two policies which are unsed in Korean electronic appliance industry. Policy I is a general warranty policy under which all of failures during warrenty period (12 months) are repaired without charge. Policy II was proposed recently by a company. Under Policy II, when the product fails until a certain times(6 months), the failed product will be replaced by the new product and all other failures from the certain time to the warrenty period (24 months) will be repaired free. We obtain the expected total warranty costs per product and necessary conditions under which the Policy II has a meaning in economic point of view without or with discount rate. Some numericla examples are considered.