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<title>A New Servicing Strategy Involvingimperfect Repairfor Two-dimensional Warranties</title>
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<name type="Personal Name" authority="">
<namePart>U. S. Pasaribu</namePart>
<role><roleTerm type="text">Primary Author</roleTerm></role>
</name>
<name type="Personal Name" authority="">
<namePart>H. Husniah</namePart>
<role><roleTerm type="text">Primary Author</roleTerm></role>
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<name type="Personal Name" authority="">
<namePart>B. P. Iskandar</namePart>
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<place><placeTerm type="text">Bandung</placeTerm></place>
<publisher>CESER PUBLICATIONS</publisher>
<dateIssued>2015</dateIssued>
<issuance>monographic</issuance>
<edition>Int. J. Appl. Math. Stat.; Vol. 53; Issue No. 4</edition>
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<languageTerm type="text">Indonesia</languageTerm>
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<note>ABSTRACT
We consider a product sold with two-dimensional warranties–such cars, trucks, etc. In the last decade,the manufacturer offers a greater age andmileage coverage in the warranty term–e.g. a car is warrantedfor maximum of 5 years or 10x103miles. The greater warranty coverage results in a higher productcompetitiveness, but that will increase the warranty cost to the manufacturer for servicing the warranty.This will become a major interest to the manufacturer to reduce the warranty cost. An appropriateservicing strategy involving replacement or imperfect repair reduces the warranty cost significantly.  Avariety of such servicing strategies has been studiedin the literature, but most of them deal with onedimensional warranties and the number of replacement or imperfect repair allowed at most one. For aproduct sold with a greater age and mileage warranty coverage, two or more imperfect repairs will beneeded in order to reduce the warranty cost. In thispaper, we study servicing strategies which allowsmore then one imperfect repairs for the case of two dimensional warranties. Numerical examples arepresented to illustrate the optimal solution (in term of the optimal parameter values of the servicingstrategies studied and the corresponding expected warranty costs) and then compare the results withthose of the servicing strategy with only one imperfect repair.</note>
<subject authority=""><topic>expected warranty cost</topic></subject>
<subject authority=""><topic>two-dimensional warranty</topic></subject>
<subject authority=""><topic>imperfect repair</topic></subject>
<subject authority=""><topic>Servicing strategy</topic></subject>
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