Warranty Period Determination Model, Case Study on Power-Train System

Marketing campaigns has widely used warranty period as a quality indication of product offer. However this subject has been refered as a quality issue but the basic principle of such a period determination is a cost benefit trade off for every manufacturer.The model proposed in this paper is a renewable warranty policy in which the warranty period of components will extend after a failure. Furthermore an algorithm is presented that takes the reliability distribution of the components being analysed, in order to reach an optimal policy while considering a predetermined budget. Reliability determination and application of proposed algorithm has also been applied to powertrain system to represent the suggested algorithm.