This thesis deals with the cost analysis of warranty policies and the determination of management decisions with respect to warranty and product reliability. More specifically, it provides new theoretical models to study the following topics:
i) The estimation of warranty cost for a variety of warranty policies to suit different types of consumer durable products.
ii) The use of various types of repair versus replacement strategies as a means to reduce the warranty cost.
iii) The selection of product reliability to achieve a trade-off between the cost of reliability improvement and the reduction in warranty cost for different reliability improvement methods.
iv) The determination of the optimal product reliability, warranty period and sales price to maximize the manufacturer's profit.