Abstract
This paper considers a problem of warranty reserving, namely, the current practice of setting aside part of a product revenue to meet future claims arising from the warranty. We define a Compound Poisson stochastic model for warranty claims and reserve and obtain, using a sample paths technique, the long‐run probability distribution of a warranty reserves, managed under alternative warranties and reserve policies.
Original language | English (US) |
---|---|
Pages (from-to) | 473-479 |
Number of pages | 7 |
Journal | Naval Research Logistics (NRL) |
Volume | 35 |
Issue number | 4 |
DOIs | |
State | Published - Aug 1988 |
ASJC Scopus subject areas
- Modeling and Simulation
- Ocean Engineering
- Management Science and Operations Research