This thesis focuses on the dependence of optimal profit on price and warranty period for an irrepairable product. The decision variables are the price and warranty period for maximizing the profit of an irrepairable product sold under warranty. Demand depends exponentially on the price and warranty period.
A profit maximizing model is analyzed in the following three cases ; determination of the optimal price given warranty period, the optimal warranty period given price, and both Phe optimal warranty period and price. A sufficient condition for uniqueness of the optimal solution in each case is obtained and sensitivity analysis for various factors is performed.
