Two-dimensional failure-free warranty policies: Two-dimensional point process models

A two-dimensionawl arrantyp olicy is characterizedb y a regioni n a two-dimensionapl lanew ith the horizontala xis representing time and the vertical axis the usage. In this paper, we study two-dimensionalf ailure-freew arrantyp olicies for nonrepairable items that requiret he manufacturetro replacea ll items which fail underw arrantyb y new ones at no cost to the buyer. We derive expressionsf or the expected warrantyc ost per item sold and for the expected life cycle cost for four differentw arrantyr egions. We illustrate these by numerical examples and discuss some resulting implications for the consumer and the manufacturer