WARRANTY COST-ANALYSIS UNDER CONTINUOUS SALES

The modeling and analysis of a variety of warranty policies and some r elated optimisation problems have been widely studied during the last decades. Recently, Blischke and Murthy proposed a new model for warran ty servicing under continuous sales. However, we point out that there is a crucial mistake in their formulation, and provide a correct formu lation. We illustrate the amounts of estimation errors using the numer ical example of Blischke and Murthy.