Two-dimensional warranty repair strategy based on minimal and complete repairs

This paper focuses on a particular warranty repair strategy, related to the degree of the warranty repair, for non-renewing, two-dimensional, free of charge to the consumer warranty policy, which considers a rectangular warranty region and divides it into three disjoint subregions, so that each of these subregion has a preassigned degree of repair for a faulty item.

Abstract

For repairable products, the warrantor has options in choosing the degree of repair applied to an item that has failed within the warranty period. We focus on a particular warranty repair strategy, related to the degree of the warranty repair, for non-renewing, two-dimensional, free of charge to the consumer warranty policy. We consider a rectangular warranty region and divide it into three disjoint subregions, so that each of these subregions has a preassigned degree of repair for a faulty item. Our main goal is to determine the subregions, so that the associated expected warranty servicing cost per item sold is minimised. A comparison between our strategy and previously studied, more restrictive, ones is provided.