Warranty issuance is key in ensuring a healthy manufacturer—consumer relationship. Manufacturers hope to minimize warranty costs while consumers believe that good warranty promises better product quality and reliability. This paper presents a framework for optimizing the warranty period from the perspective of a manufacturer to maximize the total expected profits, while ensuring sustained consumer relation. The case study is based on a remanufactured electronic product, and we use real data from a local company with a global supply chain footprint to provide the numerical example.
Track: Sustainable Manufacturing
Published in: 2nd North American International Conference on Industrial Engineering and Operations Management
Publisher: IEOM Society International
Date of Conference: September 23
-26
, 2016
ISBN: 978-0-9855497-5-6
ISSN/E-ISSN: 2169-8767