Stochastic modeling for computational warranty analysis

We examine two key stochastic processes of interest for warranty modeling: (1) remaining total warranty coverage time exposure and (2) warranty load (total items under warranty at time t). Integral equations suitable for numerical computation are developed to yield probability law for these warranty measures. These two warranty measures permit warranty managers to better understand time-dependent warranty behavior, and thus better manage warranty cash reserves. © 2005 Wiley Periodicals, Inc. Naval Research Logistics, 2005.