A comprehensive analysis of warranty claims and optimal policies

Ming Luo, Shaomin Wu

Research output: Contribution to journalArticle

Abstract

Nowadays many products, such as 3C products (Computer, Communication and Consumer Electronics) and cars, consist of software and hardware. The causes of warranty claims of such products may be attributed to software specific failures, hardware specific failures, software-hardware interaction failures and human errors. Apparently, those causes may be dependent. For example, one may claim warranty due to the malfunction of the embedded software in a product item and then the entire item may be replaced. Nevertheless, the existing research on warranty management studies mainly concentrates on warranty analysis of hardware subsystems, assuming that the warranty claims are statistically independent of those caused by the failures of software subsystems or human factors, that is, the interactions between those causes are neglected.

This paper investigates warranty costs incurred due to those three subsystems with a focus on their interactions. It estimates the costs due to different cause, develops integrated warranty cost models and optimises warranty policies considering the above possible combinations. Numerical examples are given to illustrate the proposed models.
LanguageEnglish
Pages144-159
Number of pages16
JournalEuropean Journal of Operational Research
Volume276
Issue number1
Early online date23 Dec 2018
DOIs
Publication statusPublished - 1 Jul 2019

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Warranty
Optimal Policy
Hardware
Costs
Embedded software
Subsystem
Software
Consumer electronics
Human engineering
Railroad cars
Interaction
Human Error
Embedded Software
Optimal policy
Human Factors
Cost Model
Communication
Optimise
Entire
Electronics

Cite this

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A comprehensive analysis of warranty claims and optimal policies. / Luo, Ming; Wu, Shaomin.

In: European Journal of Operational Research, Vol. 276, No. 1, 01.07.2019, p. 144-159.

Research output: Contribution to journalArticle

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