Application of optimal control theory to product pricing and warranty with free replacement under the influence of basic lifetime distributions

摘要: This study investigates optimal policies for determining price and warranty length when free replacement of defective items is the business policy demand dependent on price, warranty, cumulative sales. We apply control theory to a profit-maximization model that takes into consideration expected cost per item. The maximization market values based pre-determined life cycle spans across both expansion saturation phases market. further investigate number basic lifetime distributions, function under setting separable logistic growth. found as growth product enters different market, decision are characterized by simultaneously increasing or reducing length.