Applications of renewal theory in analysis of the free‐replacement warranty

Wallace R. Blischke and Ernest M. Scheuer

Naval Research Logistics Quarterly, 1981, vol. 28, issue 2, 193-205

Abstract: Under a free‐replacement warranty of duration W, the customer is provided, for an initial cost of C, as many replacement items as needed to provide service for a period W. Payments of C are not made at fixed intervals of length W, but in random cycles of length Y = W + γ(W), where γ(W) is the (random) remaining life‐time of the item in service W time units after the beginning of a cycle. The expected number of payments over the life cycle, L, of the item is given by MY(L), the renewal function for the random variable Y. We investigate this renewal function analytically and numerically and compare the latter with known asymptotic results. The distribution of Y, and hence the renewal function, depends on the underlying failure distribution of the items. Several choices for this distribution, including the exponential, uniform, gamma and Weibull, are considered.

Date: 1981
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://doi.org/10.1002/nav.3800280202

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:navlog:v:28:y:1981:i:2:p:193-205

Access Statistics for this article

More articles in Naval Research Logistics Quarterly from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().