One‐dimensional warranty cost analysis for second‐hand items: an overview
International Journal of Quality & Reliability Management
ISSN: 0265-671X
Article publication date: 8 March 2013
Abstract
Purpose
The purpose of this paper is to review and develop stochastic models for the evaluation of the expected warranty cost, from dealer's viewpoint, for second hand items sold under different warranty policies.
Design/methodology/approach
This study makes a useful contribution to the warranty literature by developing a framework to study one dimensional warranty policies for second‐hand products from dealer's viewpoint. Also, numerical examples are provided to illustrate the application of these models.
Findings
Despite the fact that warranties for second‐hand products are commonly used, the accurate pricing of warranties in many situations remains an unsolved problem, for both the dealer and customer. The proposed framework allows the dealer to analyze the cost of alternative warranty policies before deciding on the policy to be offered with the sale of a second‐hand item.
Originality/value
The policies and models developed in this paper can be useful in managerial decisions making related to second‐hand products such as automobiles, home appliances, helicopters, electronic equipment and electronics.
Keywords
Citation
Chukova, S. and Shafiee, M. (2013), "One‐dimensional warranty cost analysis for second‐hand items: an overview", International Journal of Quality & Reliability Management, Vol. 30 No. 3, pp. 239-255. https://doi.org/10.1108/02656711311299827
Publisher
:Emerald Group Publishing Limited
Copyright © 2013, Emerald Group Publishing Limited