Costing a new car warranty

Raymond A Summit; P Cerone

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Journal article

Peer reviewed

Costing a new car warranty

Raymond A Summit and P Cerone

Asia Pacific Journal of Operational Research, Vol.20(1), pp.89-101

2003

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Abstract

Applied Mathematics

Computation Theory and Mathematics

Business and Management

cost estimates

warranty

automobile engines

renewal theory

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

Details

Title: Costing a new car warranty
Authors: Raymond A Summit (Author) - Victoria University
P Cerone (Author) - Victoria University
Publication details: Asia Pacific Journal of Operational Research, Vol.20(1), pp.89-101
Publisher: World Scientific Publishing Co. Pty. Ltd.
Date published: 2003
ISSN: 0217-5959
Organisation Unit: School of Tertiary Access - Legacy; School of Education and Tertiary Access; University of the Sunshine Coast, Queensland
Language: English
Record Identifier: 99449041002621
Output Type: Journal article

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