Warranty Cost Analysis for Multi-State Products Protected by Lemon Laws
The implementation of lemon laws in America has played an important role in improving the quality of after-sales service. Nowadays, many countries, such as China, Canada, Europe, Australia, Singapore, and South Korea, have adopted lemon laws in various industries to protect the interest of consumers...
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| Format: | Article |
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MDPI AG
2023-01-01
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| Series: | Applied Sciences |
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| Online Access: | https://www.mdpi.com/2076-3417/13/3/1541 |
| _version_ | 1797625197342228480 |
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| author | Liying Wang Yushuang Song Qingan Qiu Li Yang |
| author_facet | Liying Wang Yushuang Song Qingan Qiu Li Yang |
| author_sort | Liying Wang |
| collection | DOAJ |
| description | The implementation of lemon laws in America has played an important role in improving the quality of after-sales service. Nowadays, many countries, such as China, Canada, Europe, Australia, Singapore, and South Korea, have adopted lemon laws in various industries to protect the interest of consumers. From the perspective of manufacturers, accurate estimation of the cost of the warranty service is of great importance in guiding product pricing, quality control, and design of warranty policies. According to the terms of different lemon laws, two warranty models considering the repair time and numbers for failures are proposed in this paper. Products under these models are multi-state, and Markov processes are used to model the degradation processes of products. In the first model, a product will be replaced by a new one if the time for a repair or the number of failures exceeds their respective thresholds over the warranty period. Under the second model, both catastrophic and minor failures are considered. A product will be replaced if one of the following three conditions is met over the warranty period: the time of one repair action (regardless of failure type) is longer than a time threshold; the number of minor failures is larger than a preset threshold; a catastrophic failure occurs. The expected warranty cost rates under the two proposed warranty models are derived under the assumption of renewable warranty terms. Numerical examples are given to illustrate the results obtained. |
| first_indexed | 2024-03-11T09:53:09Z |
| format | Article |
| id | doaj.art-989c636cc46845f8817e226efcc81576 |
| institution | Directory Open Access Journal |
| issn | 2076-3417 |
| language | English |
| last_indexed | 2024-03-11T09:53:09Z |
| publishDate | 2023-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Applied Sciences |
| spelling | doaj.art-989c636cc46845f8817e226efcc815762023-11-16T16:06:58ZengMDPI AGApplied Sciences2076-34172023-01-01133154110.3390/app13031541Warranty Cost Analysis for Multi-State Products Protected by Lemon LawsLiying Wang0Yushuang Song1Qingan Qiu2Li Yang3Department of Mathematics and Physics, Shijiazhuang Tiedao Institute, Shijiazhuang 050043, ChinaDepartment of Mathematics and Physics, Shijiazhuang Tiedao Institute, Shijiazhuang 050043, ChinaSchool of Management and Economics, Beijing Institute of Technology, Beijing 100081, ChinaSchool of Reliability and System Engineering, Beihang University, Beijing 100081, ChinaThe implementation of lemon laws in America has played an important role in improving the quality of after-sales service. Nowadays, many countries, such as China, Canada, Europe, Australia, Singapore, and South Korea, have adopted lemon laws in various industries to protect the interest of consumers. From the perspective of manufacturers, accurate estimation of the cost of the warranty service is of great importance in guiding product pricing, quality control, and design of warranty policies. According to the terms of different lemon laws, two warranty models considering the repair time and numbers for failures are proposed in this paper. Products under these models are multi-state, and Markov processes are used to model the degradation processes of products. In the first model, a product will be replaced by a new one if the time for a repair or the number of failures exceeds their respective thresholds over the warranty period. Under the second model, both catastrophic and minor failures are considered. A product will be replaced if one of the following three conditions is met over the warranty period: the time of one repair action (regardless of failure type) is longer than a time threshold; the number of minor failures is larger than a preset threshold; a catastrophic failure occurs. The expected warranty cost rates under the two proposed warranty models are derived under the assumption of renewable warranty terms. Numerical examples are given to illustrate the results obtained.https://www.mdpi.com/2076-3417/13/3/1541warrantylemon lawsmulti-state productsrenewable warrantyMarkov process |
| spellingShingle | Liying Wang Yushuang Song Qingan Qiu Li Yang Warranty Cost Analysis for Multi-State Products Protected by Lemon Laws Applied Sciences warranty lemon laws multi-state products renewable warranty Markov process |
| title | Warranty Cost Analysis for Multi-State Products Protected by Lemon Laws |
| title_full | Warranty Cost Analysis for Multi-State Products Protected by Lemon Laws |
| title_fullStr | Warranty Cost Analysis for Multi-State Products Protected by Lemon Laws |
| title_full_unstemmed | Warranty Cost Analysis for Multi-State Products Protected by Lemon Laws |
| title_short | Warranty Cost Analysis for Multi-State Products Protected by Lemon Laws |
| title_sort | warranty cost analysis for multi state products protected by lemon laws |
| topic | warranty lemon laws multi-state products renewable warranty Markov process |
| url | https://www.mdpi.com/2076-3417/13/3/1541 |
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