Warranty repair demand prediction considering new sales and failed-but-not-reported phenomena

H. T. Liao, W. Xie

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Scopus citations

Abstract

Customers are often offered free warranty repairs for a certain time period. In this paper, we study some important aspects in predicting warranty repair demand that are of interest to the manufacturer. The study is limited to a new product under a non-renewable free minimal-repair warranty policy. We consider that the installed base of the product varies with time due to both new sales and units being taken out of service. We explicitly address the fact that the customers may not always request repairs for failed units, i.e., so called failed-but-not-reported (FBNR) phenomena. For the case where the product failure time is exponential, we derive the closed-form expressions for the warranty repair demands for both an individual unit and the installed base. The insights into some risk-related quantities are also presented. A numerical example illustrates that understanding the properties of warranty repair demand is important for managing such obligatory repair services.

Original languageEnglish (US)
Title of host publicationProceedings - 18th ISSAT International Conference on Reliability and Quality in Design
Pages310-314
Number of pages5
StatePublished - Dec 1 2012
Event18th ISSAT International Conference on Reliability and Quality in Design - Boston, MA, United States
Duration: Jul 26 2012Jul 28 2012

Publication series

NameProceedings - 18th ISSAT International Conference on Reliability and Quality in Design

Other

Other18th ISSAT International Conference on Reliability and Quality in Design
CountryUnited States
CityBoston, MA
Period7/26/127/28/12

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Keywords

  • Continuous-time Markov Chain
  • Minimal Repair
  • Warranty Repair

ASJC Scopus subject areas

  • Safety, Risk, Reliability and Quality

Cite this

Liao, H. T., & Xie, W. (2012). Warranty repair demand prediction considering new sales and failed-but-not-reported phenomena. In Proceedings - 18th ISSAT International Conference on Reliability and Quality in Design (pp. 310-314). (Proceedings - 18th ISSAT International Conference on Reliability and Quality in Design).