Warranty Optimization in a Dynamic Environment
Joint Authors
Chukova, Stefanka
Dimitrov, Nedialko B.
Source
Journal of Applied Mathematics and Decision Sciences
Issue
Vol. 2009, Issue 2009 (31 Dec. 2009), pp.1-14, 14 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2009-04-15
Country of Publication
Egypt
No. of Pages
14
Main Subjects
Abstract EN
A product warranty is an agreement offered by a producer to a consumer to replace or repair a faulty item, or to partially or fully reimburse the consumer in the event of a failure.
Warranties are very widespread and serve many purposes, including protection for producer, seller, and consumer.
They are used as signals of quality and as elements of marketing strategies.
In this study we review the notion of an online convex optimization algorithm and its variations, and apply it in warranty context.
We introduce a class of profit functions, which are functions of warranty, and use it to formulate the problem of maximizing the company's profit over time as an online convex optimization problem.
We use this formulation to present an approach to setting the warranty based on an online algorithm with low regret.
Under a dynamic environment, this algorithm provides a warranty strategy for the company that maximises its profit over time.
American Psychological Association (APA)
Dimitrov, Nedialko B.& Chukova, Stefanka. 2009. Warranty Optimization in a Dynamic Environment. Journal of Applied Mathematics and Decision Sciences،Vol. 2009, no. 2009, pp.1-14.
https://search.emarefa.net/detail/BIM-470267
Modern Language Association (MLA)
Dimitrov, Nedialko B.& Chukova, Stefanka. Warranty Optimization in a Dynamic Environment. Journal of Applied Mathematics and Decision Sciences No. 2009 (2009), pp.1-14.
https://search.emarefa.net/detail/BIM-470267
American Medical Association (AMA)
Dimitrov, Nedialko B.& Chukova, Stefanka. Warranty Optimization in a Dynamic Environment. Journal of Applied Mathematics and Decision Sciences. 2009. Vol. 2009, no. 2009, pp.1-14.
https://search.emarefa.net/detail/BIM-470267
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-470267