1
Faculty Member, Department of Statistics, University of Mazandaran, Iran
2
Master's degree in Statistics, University of Mazandaran, Iran
Abstract
Manufacturers today are increasingly facing fierce competition and, in order to remain profitable, need to design, develop and produce reliable products. One of the ways that manufacturers attract consumers to their products is by providing warranties on their products. On the other hand, consumers are also willing to buy a product with a long warranty period, which creates a high cost for manufacturers. Therefore, determining the optimal and appropriate warranty period is very important for manufacturers. In this paper, using the Bayesian method and an appropriate utility function, determining the optimal warranty period for products whose lifetime distribution is exponential is investigated.
