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Warranty Cost Analysis With Heterogenous Usage Intensity
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2001
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Demand ManagementEngineeringCost IssuePricing PolicyUsage IntensityWarranty ManagementManagementEconomic AnalysisCost ManagementWarranty Cost AnalysisExpected Warranty CostBusiness AnalyticsFree Replacement WarrantyMarketingStatisticsQuantitative ManagementOperations Research
Models for cost analysis of one‐dimensional warranty policies assume that the usage intensity (or rate) is the same for all users. In real life the usage intensity varies across the population of users. This paper deals with some simple models to study the expected warranty cost for products sold with free replacement warranty with varying usage intensity.