Abstract
A repairable product under a non-renewing combined warranty policy that is subject to a displaced log-linear demand function of the product's price and pro rata period length is considered. Expressions for the manufacturer's long-run average profit per unit time under replacement, minimal and general repair options are obtained. In addition, expressions for the stationary points and second-order conditions of the profit function are presented. Numerical illustrations that demonstrate optimal product pricing, pro rata length determination, and repair option selection to maximize the manufacturers, profit are given.
| Original language | English |
|---|---|
| Pages (from-to) | 984-991 |
| Number of pages | 8 |
| Journal | IIE Transactions (Institute of Industrial Engineers) |
| Volume | 40 |
| Issue number | 10 |
| DOIs | |
| State | Published - 2008 |
Keywords
- Combined warranty
- General repair
- Minimal repair
- Pro rata warranty
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Matis, T. I., Jayaraman, R., & Rangan, A. (2008). Optimal price and pro rata decisions for combined warranty policies with different repair options. IIE Transactions (Institute of Industrial Engineers), 40(10), 984-991. https://doi.org/10.1080/07408170801971494