Cost Analysis and Period Determination in Stepdown Warranty Policy

단계별 보증제도에서의 비용분석 및 보증기간 설정

This paper is concerned with cost analysis and determination of warranty period in a stepdown warranty policy. Manufacturer's warranty cost is analyzed for nonrepairable item, where the warranty is assumed to be renewed at any failure within the warranty period. It is shown that from this result in free replacement policy, pro-rata policy and hybrid policy can be easily calculated. The method of determining optimal warranty period is also explored.