Optimal price and warranty length

Projekt:

JVTC

Sammanfattning:
With rapid advancement in technologies in the last few decades organizations today have shifted their focus from being product centric to customer/market driven. With post sales services like providing warranty playing an influential role in the purchase of new product, manufacturers today are leaning towards optimizing warranty length & price of their products in order to ensure profitability. In this paper treating optimal warranty length and price of goods as decision variables, we intend to maximize overall profit for producers under the influence of a combination of free replacement and pro-rata warranty policies. Two-dimensional innovation diffusion model incorporating both price and warranty length is employed to demonstrate product sales cycle. Exponential distribution is used to represent the lifetime of a product. To elucidate application of the model real data set is presented as illustration.

Författare: P.K. Kapur ; Uday Kumar ; Sachdeva Nitin ; Anand Adarsh
Utgivare: Communications in Dependability and Quality Management
Utgivningsdatum: 2012
Diarienummer: TRV 2011/58769
ISSN: 1450-7196
Antal sidor: 9
Språk: Engelska
Kontaktperson: Per Olof Larsson Kråik, UHjbs