Costing a New Car Warranty
Cerone, Pietro and Summit, Raymond (2003) Costing a New Car Warranty. Asia-Pacific Journal of Operational Research, 20 (1). pp. 89-101. ISSN 0217-5959Full text for this resource is not available from the Research Repository.
The reliability of a motor vehicle depends on the reliability of its numerous components. Failure data from an Australian automobile manufacturer have been analyzed in this paper and a distribution to represent the failure data has been sought. Cost models for honoring a two-year/50,000 km warranty have been developed. As failed components have been replaced with new ones, the process has been modeled as a renewal. Numerical methods have been used to solve the renewal equation. Both in-warranty and post-warranty claims have been considered and models have been developed for each case. The cost of maintaining a two-year warranty has then been compared with the cost of extended warranties of three and five years.
|Uncontrolled Keywords:||ResPubID5655, warranty, car manufacture, renewal process|
|Subjects:||Faculty/School/Research Centre/Department > School of Engineering and Science
FOR Classification > 0199 Other Mathematical Sciences Information Systems
|Date Deposited:||21 Jun 2011 04:07|
|Last Modified:||27 Jun 2012 04:52|
|ePrint Statistics:||View download statistics for this item|
|Citations in Scopus:||2 - View on Scopus|
Repository staff only