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
Personal Author(s):
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.
Descriptors:
Subject Categories:
- Economics and Cost Analysis