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Cost analysis of lemon law warranties for used equipments
Husniah H.a, Wangsaputra R.b, Iskandar B.P.b
a Department of Industrial Engineering Langlangbuana University, Bandung, 40261, Indonesia
b Department of Industrial Engineering Bandung Institute of Technology, Bandung, 40132, Indonesia
[vc_row][vc_column][vc_row_inner][vc_column_inner][vc_separator css=”.vc_custom_1624529070653{padding-top: 30px !important;padding-bottom: 30px !important;}”][/vc_column_inner][/vc_row_inner][vc_row_inner layout=”boxed”][vc_column_inner width=”3/4″ css=”.vc_custom_1624695412187{border-right-width: 1px !important;border-right-color: #dddddd !important;border-right-style: solid !important;border-radius: 1px !important;}”][vc_empty_space][megatron_heading title=”Abstract” size=”size-sm” text_align=”text-left”][vc_column_text]© 2020, CESER Publications. All rights reserved.This paper deals with a warranty policy for a repairable used equipment where it is protected by lemon laws during the warranty period. Under the lemon law warranty considered, a lemon is declared when one of the two conditions occurs: (i) the equipment has been returned to the dealer k (e.g. k=3) times to have the same problem fixed, but the dealer was unable to repair the problem satisfactorily, or (ii) the used equipment has been out of service more than d (e.g. d=30) days due to one or more defects. If the used product turns to be a lemon, then two cases are studied – (i) refund and (ii) replacement cases. For (i), the dealer will refund the purchase price, and replace with a new one with a new warranty for (ii). We give numerical examples to illustrate the expected warranty servicing cost and the risk of the warranty cost exceeding a limit cost for each cases under various different condition and some guidelines for the dealer related to the lemon laws.[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Author keywords” size=”size-sm” text_align=”text-left”][vc_column_text][/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Indexed keywords” size=”size-sm” text_align=”text-left”][vc_column_text]Expected warranty cost,Lemon laws,Refund,Replacement,Used equipment,Warranty[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Funding details” size=”size-sm” text_align=”text-left”][vc_column_text]This work is funded by the Ministry of Research, Technology, and Higher Education of the Republic of[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”DOI” size=”size-sm” text_align=”text-left”][vc_column_text][/vc_column_text][/vc_column_inner][vc_column_inner width=”1/4″][vc_column_text]Widget Plumx[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][/vc_column][/vc_row]