Comparison between two scale‐inspection and warranty policies for weight‐quality

Abstract

Purpose

To make a theoretical comparison between two scale‐inspection and warranty policies for weight‐quality, one practical and the other theoretically grounded.

Design/methodology/approach

Comparison is made in a Stackelberg game framework considering the consumer's as well as the manufacturer's viewpoint.

Findings

The practical policy is more profitable for the manufacturer than the theoretical policy in many cases.

Research limitations/implications

The study confines itself to scale‐inspection and warranty policies, but the underlying approach used in this paper can also be applied to other topics.

Practical implications

The proposed model can also provide a lower bound for the warranty.

Originality/value

The study compares a practical policy with a theoretical one from both the consumer's and manufacturer's point of view.

Citation

Sandoh, H. and Koide, T. (2005), "Comparison between two scale‐inspection and warranty policies for weight‐quality", International Journal of Quality & Reliability Management, Vol. 22 No. 7, pp. 731-748. https://doi.org/10.1108/02656710510610866