Warranty reserving

Charles S. Tapiero, Morton J. Posner

Research output: Contribution to journalArticlepeer-review

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 languageEnglish (US)
Pages (from-to)473-479
Number of pages7
JournalNaval Research Logistics (NRL)
Volume35
Issue number4
DOIs
StatePublished - Aug 1988

ASJC Scopus subject areas

  • Modeling and Simulation
  • Ocean Engineering
  • Management Science and Operations Research

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