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Available at MATHEMATICAL
www.ElsevierM
COMPUTER
l ONSlSD .I mcImNCm d! DIRl!CT* MODELLING
Mathematical and Computer Modelling 38 (2003) 1211-1217
/locate/mcm
Warranty and Optimal Reliability Improvement
through Product Development
A. Z. M. 0. HUSSAIN
CSIRO Mathematical and Information Sciences
Melbourne, Victoria, Australia
Obaid.Hussain@csiro.au
D. N. P. MURTHY
The University of Queensland
Brisbane, Queensland 4072, Australia
p,murthy@,au
Abstract-For products sold with warranty, the warranty servicing cost can be reduced by im-
proving product reliability through a development process. However, this increases the unit manu-
facturing cost. Optimal development must achieve a trade-off between these two costs. The outcome
of the development process is uncertain and needs to be taken into account in the determination of
the optimal development effort. The paper develops a model where
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