An attractiveness index based approach for warranty optimization

The purpose of this paper is to develop an attractiveness index-based warranty cost model considering decision variables as design alternatives, warranty duration and support level.

A warranty optimization approach is illustrated using a real life example of an automobile engine with Mean Time Between Failures and Warranty Attractiveness Index as constraints.

It will help to improve the customer satisfaction by giving a more attractive warranty compared to that being offered by the competitors.

Approaches that consider the effect of decision variables on attractiveness of a warranty policy in a quantitative manner have received relatively less attention. The paper attempts to capture the attractiveness of warranty from the manufacturer as well as customer point of view.

The proposed approach will help manufacturers to take appropriate decisions related to warranty parameters and component selection at the design stage.