Final purchase and trade-in decisions in response to a component phase-out announcement

摘要

We investigate a problem faced by a durable-goods manufacturer of a product that is no longer manufactured but still under warranty. A supplier announces that a component of the product will be phased out and specifies a deadline for the final order. A common response in traditional practice is to place a final order sufficient to cover future warranty claims. We analyze and compare this policy with two policies that use trade-in programs to supplement the final order quantity.