Optimal Warranty Policy for Consumer Electronics with Dependent Competing Failure Processes

Yeu Shiang Huang, Chih Chiang Fang, Chang Ming Lu, Tzu Liang (Bill) Tseng

研究成果: Article同行評審

11 引文 斯高帕斯(Scopus)


This study considers warranties for consumer electronics with multiple dependent competing failure processes, including minor, over-degradation and catastrophic failure. Furthermore, the two alternative warranty programs are investigated: (1) a long-range warranty at a fixed lump-sum price and (2) a monthly warranty plan that can be either extended for the next month by continuous purchasing or terminated at the end of the current month. A designed dynamic programming approach is employed to obtain optimal solutions for warranty programs. Moreover, consumers with different attitudes toward risk are taken in consideration, and sensitivity analyses are performed to investigate the effects that the related factors have on profit. Integrating all issues, the study proposes extended warranty programs of lump-sum or monthly payment to different risk attitudes consumers with different attitudes toward risk with consideration of multiple dependent competing failure processes. The results indicate that high repair and replacement costs favor the monthly warranty program for firms. In addition, when there are more risk averse consumers in a market, there will be fewer purchases of a monthly warranty program, and it would thus be more profitable for firms to offer the one year warranty program.

期刊Reliability Engineering and System Safety
出版狀態Published - 2022 6月

All Science Journal Classification (ASJC) codes

  • 安全、風險、可靠性和品質
  • 工業與製造工程


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