Design of Extended Warranties in Supply Chains

  title={Design of Extended Warranties in Supply Chains},
  author={Kunpeng Li and Dilip Chhajed and Suman Mallik},
Consider a supply chain involving an independent retailer and an independent manufacturer. The manufacturer produces a single product and sells it exclusively through the retailer. Using this supply chain framework, we develop a game theoretic model to study two commonly observed practices of selling extended warranties: the manufacturer offers the extended warranty directly to the end consumer, and the retailer selling the product offers extended warranty. We show that, of the two… CONTINUE READING

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