Accession Number:

ADA001015

Title:

Calculation of the Cost of Warranty Policies as a Function of Estimated Life Distributions.

Descriptive Note:

Technical progress rept.,

Corporate Author:

UNIVERSITY OF SOUTHERN CALIFORNIA LOS ANGELES DEPT OF QUANTITATIVE BUSINESS ANALYSIS

Report Date:

1974-10-01

Pagination or Media Count:

27.0

Abstract:

Two types of warranties are analyzed. These are the free-replacement warranty, under which failed items are replaced free of charge until a specified total operating time has been achieved, and the pro-rata warranty, under which items which fail prior to a specified time are replaced at pro-rata cost to the buyer. Both the buyers and sellers points of view are considered. The basis of the analysis is a comparison of warrantied and unwarrantied otherwise identical items with regard to long-run cost to the buyer and long-run profit to the seller.

Subject Categories:

  • Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE