A REPAIR COST LIMIT POLICIES WITH FIXED WARRANTY PERIOD

摘要

Repairable products which fail within the warranty period are either repaired or replacedby the contractor. In a repair cost limit policy, the repair cost is estimated at each failure and if the cost is greater than a predetermined cost limit, the failed product is replaced by a new one, otherwise it is minimally repaired. In this paper, various repair cost limit shapes with a free warranty period are considered and the best cost limit shape is proposed.