The role of repair strategy in warranty cost minimization: An investigation via quasi-renewal processes

Abstract

Most companies seek efficient rectification strategies to keep their warranty related costs under control. This study develops and investigates different repair strategies for one- and two-dimensional warranties with the objective of minimizing manufacturer’s expected warranty cost. Static, improved and dynamic repair strategies are proposed and analyzed under different warranty structures. Numerical experimentation with representative cost functions indicates that performance of the policies depend on various factors such as product reliability, structure of the cost function and type of the warranty contract.