Two-dimensional warranty : A literature review

The warranty policies for capital-intensive products, such as automobiles, heavy equipment, and aircraft engines, typically have two dimensions, that is, the age and usage. During the last two decades, much research has been published on the two-dimensional warranty from many different perspectives. This article reviews and summarizes work and state-of-the-art developments in this research field, with emphasis on both theoretical methodologies and practical applications. In this review, five principal topics are covered: (1) two-dimensional warranty policies, (2) cost analysis of two-dimensional warranty, (3) two-dimensional warranty and engineering/marketing problems, (4) two-dimensional warranty and logistics issues, and (5) two-dimensional long-term warranty. In particular, the practical and application aspects of two-dimensional warranty policies have been surveyed. Overall, 105 journal papers covering 49 journals, published from 1993 to present, are selected and discussed in detail. Finally, some interesting and challenging research topics are presented for the scholars and practitioners to explore new research in this field.