A stochastic model for remanufactured products with warranty in supply chain

The customers are always unaware of the product quality when they buy a remanufactured product and so as a signal of promising the customers about the quality of the products which they buy, the manufacturers provide a warranty. This article analyses a supply chain comprising of a remanufacturer and...

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Bibliographic Details
Published in:Life cycle reliability and safety engineering 2017-09, Vol.6 (3), p.207-214
Main Authors: Yedida, Sarada, Sekar, Sangeetha
Format: Article
Language:English
Subjects:
Civil Engineering
Engineering
Mechanical Engineering
Original Research
Quality Control
Reliability
Safety and Risk
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Summary:The customers are always unaware of the product quality when they buy a remanufactured product and so as a signal of promising the customers about the quality of the products which they buy, the manufacturers provide a warranty. This article analyses a supply chain comprising of a remanufacturer and the end customers where the remanufacturer sells the products in the remanufacturing market to the end customers. The demand of the remanufacturer and the time to failure of the products sold under warranty are stochastic in nature. Two cases are discussed to exhibit the significance of providing warranty. Finally, numerical illustrations are depicted in the form of graphs to demonstrate the impact of expected profit against the quantity of the remnufactured products which reveals that the profit of the manufacturers gets augmented when warranty is provided.
ISSN:2520-1352
2520-1360
DOI:10.1007/s41872-017-0027-3