This study considers a remanufactured electrical product under a tiered warranty policy. Warranty is key in ensuring a good manufacturer—consumer relationship. Manufacturers hope to minimize warranty costs while consumers believe that good warranty promises better product quality and reliability. This paper presents an optimal warranty period from the perspective of a manufacturer to maximize the total expected profits, while ensuring sustained consumer relation. We use real data from a local company to provide a numerical example.
Decision Sciences
Warranty Optimization for Remanufactured Products
22 views
4 Downloads