Warranty return policies for products with unknown claim causes and their optimisation

In practical warranty services management, faults may not always be found in claimed items by warranty service agents, which is the well-known no-fault found phenomenon (for example, caused by a loose connection between parts, or simply human error). This phenomenon can contribute more than 40% of reported service faults in electronic products and it can be due to faults of manufacturers or product users. Little research, however, considers this phenomenon in warranty management since faults are normally assumed to be found in the claimed items. On the basis of different levels of testing, this paper proposes three warranty return policies, which decide whether new items should be sent to warranty claimants or not. It then derives and compares the expected costs of the policies, and obtains the optimal warranty periods under supply chain environments. The paper illustrates the results with artificially generated data

Warranty and Maintainability Analysis for Sensor Embedded Remanufactured Products in Reverse Supply Chain Environment

Remanufactured products are very popular with consumers due to their appeal to offer the latest technology with lower prices compared to brand new products. The quality of a remanufactured product induces hesitation for many consumers, in regards to its efficacy and reliability. One stratagem that remanufacturers could employ to encourage customer security are product warranties. This paper studies and scrutinizes the impact that would be had by offering renewing warranties on remanufactured products. This study was able to determine the optimal costs of warranty for two-dimensional non-renewable warranty offered on remanufactured products using the simulation model and design of experiments

Community Wind Financing Handbook

The goal of this handbook is to identify critical financing issues and present several possible financing models that reflect the differing financial positions and investment goals of various project owners/developers. The handbook includes six sections:-- Section I describes various models for community wind power ownership.-- Section II examines sources of equity and debt financing and the steps necessary to secure this financing.-- Section III identifies federal grant and loan programs and state incentives for wind power development.-- Section IV reviews the federal tax incentives supporting wind power projects, the impact of these incentives on project economics, and limitations on utilizing these incentives.-- Section V examines power purchase agreements and the value of green tags to community wind power projects.-- The Appendix contains a list of operating community wind projects in the United States and a list of project consultants and financing resources.Principal author: Charles Kubert, Environmental Business Specialist, with assistance from Howard Learner, Executive Director, Jill Geiger, Director of Communications and Marketing, and Rebecca Stamey-White, Policy Associat

Distribution System Voltage Management and Optimization for Integration of Renewables and Electric Vehicles: Research Gap Analysis

California is striving to achieve 33% renewable penetration by 2020 in accordance with the state’s Renewable Portfolio Standard (RPS). The behavior of renewable resources and electric vehicles in distribution systems is creating constraints on the penetration of these resources into the distribution system. One such constraint is the ability of present-­‐‑day voltage management methodologies to maintain proper distribution system voltage profiles in the face of higher penetrations of PV and electric vehicle technologies. This white paper describes the research gaps that have been identified in current Volt/VAR Optimization and Control (VVOC) technologies, the emerging technologies which are becoming available for use in VVOC, and the research gaps which exist and must be overcome in order to realize the full promise of these emerging technologies

An Analysis of the Technical and Economic Potential for Mid-Scale Distributed Wind

This report examines the status, restrainers, drivers, and estimated development potential of mid-scale (10 kW to 5000 kW) distributed wind projects. This segment of the wind market has not enjoyed the same growth that central-station wind has experienced. The purpose of this report is to analyze why, and to assess the market potential for this technology under current market and policy conditions. As discussed in section 2, one of the most significant barriers to the development of distributed wind is a general scarcity of turbine choices and turbine inventory available for purchase. Most turbine manufacturers have scaled back their involvement in the mid-scale market segments in favor of larger turbines suitable for large, central-station wind farms. Those distributed-scale turbines that are available are often relatively expensive (on a $/kW basis), hard to order in single units or small lots, and suffer from long delivery delays. Section 3 discusses various other factors—both positive and negative—that affect the viability of distributed wind. In addition to the product scarcity described in section 2, distributed wind is challenged by relatively poor productivity (compared with more modern large turbines), siting issues, burdensome interconnection rules, aesthetic concerns, and fragmented state rules regarding net metering. Several other factors favor distributed wind: areas of high and rising retail electricity prices, increasingly favorable public policies, and greater community interest in the environmental and economic benefits of renewable energy. As examined in section 4, the study evaluated the economic potential for distributed wind in the contiguous United States, excluding Alaska and Hawaii. The analysis began with a GIS screening process to eliminate areas that are technically impractical for distributed wind. Sites were eliminated in areas where: • Elevation was too high; • Slope was too steep; • Population density was too great; • Wind Power Class was less than 2; and • Areas legally excluded from wind-power development, such as national parks. After screening out ineligible sites, more than 3.6 million surviving sites were evaluated to determine whether distributed wind would be financially feasible. Certain customer types were excluded from the study, such as agricultural, construction companies, and military facilities, because they lacked data necessary for the analysis. The financial model considered: • Wind resources; • Wholesale and retail power prices; • Renewable Energy Credit (REC) prices; • Customer type (community wind, commercial, industrial, or public facility); • Project size; • Turbine technical and financial characteristics; • Onsite and offsite energy use; and • Incentives. The results varied significantly by customer class. Overall, the study showed that 67,100 out of the 3,611,655 sites/areas that were analyzed for economic viability yielded a positive net present value under current market conditions and policies and including all applicable state and federal incentives. To assess the potential of new technology, two virtual wind turbines—the NREL 250 and NREL 500—were included in the analysis. These virtual turbines were compared to existing 250 kW and 500 kW turbines. Overall, the study showed that 204,677 sites analyzed had positive net present values with the virtual turbines compared with 10,407 economically successful projects with existing 250 kW and 500 kW turbines. These numbers do not include the application of capped state and federal incentives. The following crucial changes could expand distributed wind development into the future. • Improvements in technology; • Reductions in cost; • Greater productivity at lower wind speeds; and • Greater policy support

An Analysis of the Technical and Economic Potential for Mid-Scale Distributed Wind

This report examines the status, restrainers, drivers, and estimated development potential of mid-scale (10 kW to 5000 kW) distributed wind projects. This segment of the wind market has not enjoyed the same growth that central-station wind has experienced. The purpose of this report is to analyze why, and to assess the market potential for this technology under current market and policy conditions. As discussed in section 2, one of the most significant barriers to the development of distributed wind is a general scarcity of turbine choices and turbine inventory available for purchase. Most turbine manufacturers have scaled back their involvement in the mid-scale market segments in favor of larger turbines suitable for large, central-station wind farms. Those distributed-scale turbines that are available are often relatively expensive (on a $/kW basis), hard to order in single units or small lots, and suffer from long delivery delays. Section 3 discusses various other factors—both positive and negative—that affect the viability of distributed wind. In addition to the product scarcity described in section 2, distributed wind is challenged by relatively poor productivity (compared with more modern large turbines), siting issues, burdensome interconnection rules, aesthetic concerns, and fragmented state rules regarding net metering. Several other factors favor distributed wind: areas of high and rising retail electricity prices, increasingly favorable public policies, and greater community interest in the environmental and economic benefits of renewable energy. As examined in section 4, the study evaluated the economic potential for distributed wind in the contiguous United States, excluding Alaska and Hawaii. The analysis began with a GIS screening process to eliminate areas that are technically impractical for distributed wind. Sites were eliminated in areas where: • Elevation was too high; • Slope was too steep; • Population density was too great; • Wind Power Class was less than 2; and • Areas legally excluded from wind-power development, such as national parks. After screening out ineligible sites, more than 3.6 million surviving sites were evaluated to determine whether distributed wind would be financially feasible. Certain customer types were excluded from the study, such as agricultural, construction companies, and military facilities, because they lacked data necessary for the analysis. The financial model considered: • Wind resources; • Wholesale and retail power prices; • Renewable Energy Credit (REC) prices; • Customer type (community wind, commercial, industrial, or public facility); • Project size; • Turbine technical and financial characteristics; • Onsite and offsite energy use; and • Incentives. The results varied significantly by customer class. Overall, the study showed that 67,100 out of the 3,611,655 sites/areas that were analyzed for economic viability yielded a positive net present value under current market conditions and policies and including all applicable state and federal incentives. To assess the potential of new technology, two virtual wind turbines—the NREL 250 and NREL 500—were included in the analysis. These virtual turbines were compared to existing 250 kW and 500 kW turbines. Overall, the study showed that 204,677 sites analyzed had positive net present values with the virtual turbines compared with 10,407 economically successful projects with existing 250 kW and 500 kW turbines. These numbers do not include the application of capped state and federal incentives. The following crucial changes could expand distributed wind development into the future. • Improvements in technology; • Reductions in cost; • Greater productivity at lower wind speeds; and • Greater policy support

Some contributions to modeling usage sensitive warranty servicing strategies and their analyses

Providing a warranty as a part of a product\u27s sale is a common practice in industry. Parameters of such warranties (e.g., its duration limits, intensity of use) must be carefully specified to ensure their financial viability. A great deal of effort has been accordingly devoted in attempts to reduce the costs of warranties via appropriately designed strategies to service them. many such strategies, that aim to reduce the total expected costs of the warrantor or / and are appealing in other ways such as being more pragmatic to implement - have been suggested in the literature. Design, analysis and optimization of such servicing strategies is thus a topic of great research interest in many fields. In this dissertation, several warranty servicing strategies in two-dimensional warranty regimes, typically defined by a rectangle in the age-usage plane, have been proposed, analyzed and numerically illustrated. Two different approaches of modeling such usage sensitive warranty strategies are considered in the spirit of Jack, Iskandar and Murthy (2009) and Iskandar (2005). An `Accelerated Failure Time\u27 (AFT) formulation is employed to model product degradation resulting due to excessive usage rate of consumers. The focus of this research is on the analysis of warranty costs borne by the manufacturer (or seller or third party warranty providers) subject to various factors such as product\u27s sale price, consumer\u27s usage rate, types and costs of repair actions. By taking into account the impact of the rate of use of an item on its lifetime, a central focus of our research is on warranty cost models that are sensitive to the usage rate. Specifically, except the model in Chapter 4 where the rate at which an item is used is considered to be a random variable; all other warranty servicing policies that we consider, have usage rate as a fixed parameter, and hence are policies conditional on the rate of use. Such an approach allows us to examine the impact of a consumer\u27s usage rate on the expected warranty costs. For the purpose of designing warranties, exploring such sensitivity analysis may in fact suggest putting an upper limit on the rate of use within the warranty contract, as for example in case of new or leased vehicle warranties. A Bayesian approach of modeling 2-D Pro-rated warranty (PRW) with preventive maintenance is considered and explored in the spirit of Huang and Fang (2008). A decision regarding the optimal PRW proportion (paid by the manufacturer to repair failed item) and optimal warranty period that maximizes the expected profit of the rm under different usage rates of the consumers is explored in this research. A Bayesian updating process used in this context combines expert opinions with market data to improve the accuracy of the parameter estimates. The expected profit model investigated here captures the impact of juggling decision variables of 2-D pro-rated warranty and investigates the sensitivity of the total expected profit to the extent of mis-specification in prior information

Sustainability via extended warranty contracts: design for a consumer electronics retailer

Warranty is one of the most important attributes of any product, from both manufacturer and consumer points of view. Although the retailers connect manufacturers to customers by selling goods, traditionally, they have isolated themselves from warranty-related matters such as customer complaints and maintenance costs. However, recent trends in consumer behavior toward extended warranty contracts have changed this approach. While retailers have started to generate considerable revenue from the sale of these contracts, sustainability is also achieved by longer product life cycles. This study analyzed the failure behavior of different classes of cell phone products and their related costs through a chain of consumer electronics retailer operating in Türkiye. To compete on pricing and customer service, a novel policy was designed for the retailer to honor the contracts in house rather than underwriting to a third party insurer as the industry standard. The maintenance records of 328 previous failures were analyzed to plot a failure model. Failure mode and effects analysis was carried out to identify failure classes and the respective costs for extended warranty design for cell phones. The expected warranty costs for coverage of the third, fourth, and fifth years of operation were determined. The results show that the retailer may achieve the same level of profit by increasing customer satisfaction along with the sustainability of the product through repair actions.Publisher's VersionQ2WOS:00114030000000