The effect of reliability improvement actions and providing warranty policy type LIC and FRW/LSW on price range of used devices

Abstract

Access to new products and also buyers’ requirements to specific technologies have become more difficult because of the low purchasing power of some consumers, some sanctions and political issues in the world; these cases have caused noticing to second- hand market. Product warranty and performance guarantee are also the cases to attract customer and gain his/her trust. Buyers’ hesitant on proper functioning of these products has encouraged vendors to perform reliability improvement actions and provide valid warranties to gain their confidence. The effect of reliability improvement actions and providing warranty policies limited on individual cost (LIC) and free replacement warranty /repair warranty/lump sum warranty (FRW/LSW) on the price range of two types of used laboratory equipments of Mehr Abrar Company will be surveyed. This research is an applicable type that after consistency of failure rate function with exponential function has been used for estimation of warranty cost from available models in the literature. Warranty cost was also calculated after reliability improvement actions with hybrid approach of virtual life, minor-full repair; and then determined by using cost data of accounting department in price range of each device. Statistical society consists of all failure data of cell counter and biochemistry devices of Mehr Abrar Company in the period of four years.The results show that after performing reliability improvement actions, period warranty costs are reduced; and this affects on total costs and devices price per unit. For vendor, the cost of LIC policy is more than FRW/LSW warranty, this is because that a higher price ceiling has been considered. However, FRW/LSW policy in long-term and LIC policy in short-term can help the vendor to provide his/her product.