A Full Lifecycle Diagnosis Policy Design Based on Claim Data for New Products with Free Replacement Warranty

Warranty has been widely used as a means of sales promotion. However, the warranty services could also result in considerable cost and hurt a company's profitability. It is not uncommon that some failures within warranty period are caused by consumers' violation of instructions, which should not be covered by the warranty service. Therefore, in order to minimize the total cost, this research studies the integration of maintenance strategies with appropriate diagnosis strategies to identify failures that are out of warranty. Heterogeneous usage rate is also considered. Moreover, this study proposes the dynamic partial diagnosis strategy for the free replacement warranty contract. Finally, the design of claim data management and the full lifecycle warranty service policy for new products are presented.