In this study, discrete-event simulation was used to optimize the implementation of a one-dimensional renewing warranty policy for remanufactured products.
The new rules would also require boxes the dealer could check to tell consumers if the manufacturer's new-car warranty still applied, if a manufacturer's used-car warranty applied or if another type of warranty was offered.
Comparisons of warranty costs and temporal periods are made amongst different warranty policies.
According to this table, offering warranty achieves statistically significant savings in holding, backorder, disassembly, disposal, remanufacturing, transportation, warranty and number of warranty claims.
This study proposes a strategy that offers customers a two-dimensional warranty menu with a number of warranty choices, called a flexible warranty policy.
According to Table 6, offering MBG warranty with PM during the warranty period for remanufactured MOs helps achieves statistically significant savings in holding, backorder, disassembly, disposal, remanufacturing, transportation, warranty, PM costs and number of warranty claims.
One of the key points in providing an appropriate policy of warranty is to estimate the optimized warranty coverage.
Murthy and Blischke (2005) studied the terms of warranty obligations of cost models and warranty models based on different platforms.
This results into a customer-rush near the warranty expiration limit leading to an occurrence of 'spikes' in warranty claims towards the end of warranty period and thereby introducing a bias into the dataset.
Analysis of warranty based big data has gained considerable attention due to its potential for improving the quality of products whilst minimizing warranty costs.
This implies that the numbers of warranty claims of different products may be related, and optimisation of warranty policies for each individual product may therefore cause biased decisions.
