A New Warranty Policy With Failure Times and Warranty Servicing Times

The results of the research indicate that more sophisticated bivariate distributions other than the BED is worth the effort, as a future research problem, or using other data sets in a general industrial application setting.

Abstract

We develop a new warranty policy with respect to the failure time and warranty servicing time, where those two variables are statistically correlated in bivariate distributions. Based on the developed approaches, we investigate the properties of the bivariate function, and obtain the number of warranty services in a warranty period using the field data. The warranty service includes the repair service, and replacement service. An approach of analyzing the warranty cost is proposed for a product in which the failure time and warranty servicing time are used simultaneously to determine the eligibility of a warranty claim. In the vast literature of the warranty modeling, the two-dimensional warranty is commonly consisting of the usage, and the age. In this study, we focus on the failure time and warranty servicing time as two factors under the warranty policy. Using the field data, the parameters are calculated, and the warranty model is investigated using a bivariate exponential distribution (BED) which was the best fit distribution based on the field data. Numerical examples are discussed to demonstrate the applicability of the methodology derived in the paper. The results of our research in this paper indicate that more sophisticated bivariate distributions other than the BED is worth the effort, as a future research problem, or using other data sets in a general industrial application setting.