Planning And Design of Service Contracts for Consumer Durable Goods

Cover Planning And Design of Service Contracts for Consumer Durable Goods
Planning And Design of Service Contracts for Consumer Durable Goods
Uday S Karmarkar
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Vi) Design of data collection and information systems. Vii) Special problems. In making these decisions the manufacturer should employ all the information he can obtain about the failure characteristics of the product. If it possible to model and predict part failure, the relationship between product cost and reliability, expected costs of repair etc. , the decisions involved can be made on a systematic basis. DECISION PROBLEMS IN PLANNING AND DESIGN: All the decisions described below can be se...en to be highly interrelated. However the issue of interactions is deferred for the present for the sake of expositional clarity. 1) Design of the Service Contract : This relates to the design of the terms of service contract offer. The main variables involved are : i) Price ii) Time horizon iii) Extent of services to be provided. Price : This is naturally related to the other terms of the contract. Once those are fixed, the price must be set not only on the basis of profit margin considerations and cost of providing the services contracted for, but also on the marketing and promotional value of the contract and other -4- competitive factors.

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