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- W576944891 abstract "Warranty reserve analysis is used by producers to decide on the amount of money they need to set aside to cover warranty claims arising during the life cycle of a product. For computing the appropriate warranty reserve, we first derive first and second moments of the producer's total discounted warranty cost arising from a single sale. By using these results in conjunction with stochastic models of the sales processes, we compute the mean and variance of the producer's total discounted warranty cost of aggregate sales over the product life cycle. Finally, we use these quantities to derive the level of warranty reserve by using a Normal approximation. Under this structure, we consider many different kinds of warranty policies, e.g. renewable free-replacement, non-renewable free-replacement, pro rata, non-renewable minimal-repair, non-renewable minimal repair with time dependent costs, combination of good-as-new repair and minimal repair, and non-renewable combined warranty policies. We also consider two-dimensional warranty policies, e.g. 2-D renewable free-replacement, 2-D non-renewable free-replacement, 2-D pro rata warranty policies. Different kinds of stochastic sales processes are discussed in this work, e.g. nonhomogeneous compound Poisson process, stochastic process with independent increments, Markov modulated process, and batch renewal process. A software package, WARE, is developed to assist in the computation of the warranty reserve." @default.
- W576944891 created "2016-06-24" @default.
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- W576944891 date "1998-01-01" @default.
- W576944891 modified "2023-09-23" @default.
- W576944891 title "Computation of warranty reserves for non-stationary sales processes" @default.
- W576944891 hasPublicationYear "1998" @default.
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