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Method For Warranty Coverage Optimization

IP.com Disclosure Number: IPCOM000005789D
Publication Date: 2001-Nov-06

Publishing Venue

The IP.com Prior Art Database

Abstract

From the standpoint of a competitive advantage or government regulations, an automobile manufacturer may be forced to change the limit(s) of the warranty policy, which inevitably impacts the percent of covered customers as well as the potential warranty cost. The invention offers an approach to estimating the cost effect of introducing a mileage limit in a one-dimensional, time truncated warranty policy with a simultaneous change of the time limit. The discussed approach helps to choose an optimal warranty policy, which is beneficial to the customer and financially viable to the company.