Warranty Cost Analysis within Sustainable Supply Chain

The primary contribution offered by this book chapter is that it presents a quantitative assessment of the effect of offering warranties on remanufactured items from a manufacturer's perspective in that it proposes an appealing price in the eyes of the buyer as well. While there are developmental studies on warranty policies for brand new products and a few on secondhand products, there exist limited studies that evaluate the potential benefits of warranties on remanufactured products in a quantitative and comprehensive manner. In these studies, the profit improvements achieved by the offering of warranties for different policies determine the range of how much money can be invested in a warranty while still keeping it profitable overall. This paper considers how to predict the effect of offering non-renewable one-dimensional warranty policies to disassembled components and sensor embedded remanufactured products and how to assess the impact of sensor embedded products on warranty cost.