Determination of optimal pricing and warranty policies

An important problem facing manufacturers in today\u27s competitive market is the determination of the selling price of a product and its warranty period. A longer warranty may serve as a signal of product reliability; however, it may also lead to an increase in cost and hence reduce the profit if the product reliability is low. A burn-in test may be used to improve the reliability of products prior to their shipment.;This research presented integrated models for maximizing the expected profit for products that are subjected to a burn-in test and sold with warranty. The burn-in time, warranty period, and price were chosen as three decision variables in these models. The price and warranty period were treated as marketing variables and a simple multiplicative form was used to model their effect on sales. Solution procedures were developed for several warranty policies. These procedures are applicable for any failure time distribution. Three failure time distributions were further investigated and formulas for optimal solutions were derived. Finally, two sets of data were used to illustrate the application of the models. Two computer programs were developed to solve the models both parametrically and nonparametically

Optimal Burn-in Time and Imperfect Maintenance Strategy for a Warranted Product with Bathtub Shaped Failure Rate

‘Burn-in/preventive maintenance’ programme is an efficient approach used to minimise the warranty servicing cost of a product with bathtub shaped failure rate. Burn-in is a widely used method to improve the quality of product during its ‘infant mortality’ period and preventive maintenance is a scheduled necessary activity carried out during its ‘wear-out’ period. In this paper, an optimisation model is developed to determine the optimal burn-in time and optimal imperfect preventive maintenance strategy that minimises the total mean servicing cost of a warranted product with an age-dependent repair cost. We provide a numerical study to illustrate our results

Vendors are Undermining the Structure of U.S. Elections

As we approach the 2008 general election, the structure of elections in the United States -- once reliant on local representatives accountable to the public -- has become almost wholly dependent on large corporations, which are not accountable to the public. Most local officials charged with running elections are now unable to administer elections without the equipment, services, and trade-secret software of a small number of corporations. If the vendors withdrew their support for elections now, our election structure would collapse. Case studies presented in this report give examples of the pervasive control voting system vendors now have over election administration in almost every state, and the consequences some jurisdictions are already experiencing.However, some states and localities are recognizing the threat that vendor-dependency poses to elections. They are using ingenuity and determination to begin reversing the direction. This report examines the situation, how we got here, and steps we can take to limit corporate control of our elections in 2008 and reduce it even further in the future

Reliability Analysis of Nanocrystal Embedded High-k Nonvolatile Memories

The evolution of the MOSFET technology has been driven by the aggressive shrinkage of the device size to improve the device performance and to increase the circuit density. Currently, many research demonstrated that the continuous polycrystalline silicon film in the floating-gate dielectric could be replaced with nanocrystal (nc) embedded high-k thin film to minimize the charge loss due to the defective thin tunnel dielectric layer. This research deals with both the statistical aspect of reliability and electrical aspect of reliability characterization as well. In this study, the Zr-doped HfO2 (ZrHfO) high-k MOS capacitors, which separately contain the nanocrystalline zinc oxide (nc-ZnO), silicon (nc-Si), Indium Tin Oxide (nc-ITO) and ruthenium (nc-Ru) are studied on their memory properties, charge transportation mechanism, ramp-relax test, accelerated life tests, failure rate estimation and thermal effect on the above reliability properties. C-V hysteresis result show that the amount of charges trapped in nanocrystal embedded films is in the order of nc-ZnO\u3enc-Ru\u3enc-Si~nc-ITO, which might probably be influenced by the EOT of each sample. In addition, all the results show that the nc-ZnO embedded ZrHfO non-volatile memory capacitor has the best memory property and reliability. In this study, the optimal burn-in time for this kind of device has been also investigated with nonparametric Bayesian analysis. The results show the optimal burn-in period for nc-ZnO embedded high-k device is 5470s with the maximum one-year mission reliability

Developing a Trade-off between Upgrade Action Time and Warranty Length for Second-hand Electrical Components

One way of improving the reliability and reducing the warranty servicing cost for second-hand items is through actions such as overhaul and upgrade which are carried out by the dealer or a third party. For second-hand electrical components, the improvement involves testing of items for a short time, called upgrade action time, before their release to the market. The items that fail during the test are scrapped or repaired; only items that survive the test are considered to be of good quality and released to the market. In this paper, a cost model is developed to achieve a trade-off between reducing the warranty servicing cost and increasing the upgrade action cost for a second-hand electrical component sold under various warranty policies

Modeling and Analysis of Effective Ways for Improving the Reliability of Second-hand Products Sold with Warranty

Often, customers are uncertain about the performance and durability of the used/second-hand products. The warranties play an important role in reassuring the buyer. Offering the warranty implies that the dealer incurs additional costs to service any claims made by the customers. Reducing warranty costs is an issue of great interest to dealers. One way of improving the reliability and reducing the warranty servicing cost for second-hand items is through actions such as overhaul and upgrade which are carried out by the dealer or a third party. Improving actions allow the dealer to offer better warranty terms and to sell the item at a higher price. This paper deals with two effective approaches (virtual age approach and screening test approach) to decide on the reliability improvement strategies for second-hand products sold under various warranty policies (failure-free, rebate warranty, and a combination of free replacement and lump sum). A numerical example illustrates that from a dealer’s point of view, it is beneficial to carry out an improvement action only if the reduction in the warranty servicing cost is greater than the extra cost incurred due to this improvement action

On assumptions in optimisation of warranty policies

Optimisation of warranty policy has been a hot research topic in both operations research and statistics communities since warranty providers hope to balance cost-benefit analysis in the nowadays competitive market. Some assumptions are inevitably needed for such research. Most of the existing publications, however, make assumptions that may not be true in practice, based on which biased decision may be made. This paper discusses pitfalls in the assumptions, which include causes of warranty claims, pattern of warranty claims, warranty claim models, field reliability vs product reliability, the relationship between usage and age in 2-dimensional warranty. A real-world example is used to elaborate the arguments

Poly Pelletizer: Recycled Pet Pellets From Water Bottles

Plastic water bottles comprise a large amount of waste worldwide. The goal of the Poly Pelletizer project is to create a system that will turn water bottles into polyethylene terephthalate (PET) pellets compatible with extruders to produce 3-D printer lament, along with other recycling applications.The system promotes a sustainable solution to plastic pollution by giving manufactures, particularly in developing nations, the means to produce their own bulk materials using waste plastic. Shrinking industrial recycling processes to a workbench scale gives individuals the ability to convert excess bottles into seemingly limitless products. The system works by using a dual heating and pressure system to both evenly mix and melt the plastic before pushing the resin through a die. The Poly Pelletizer successfully created pellets using various mixtures of virgin PET and shredded water bottles

Optimal Burn-In under Complex Failure Processes: Some New Perspectives

Ph.DDOCTOR OF PHILOSOPH