An approach to dormant system warranty analysis

An approach to determine if a warranty is cost-effective, i.e affordable with respect to the potential benefits, is introduced. The approach makes use of the perceived technical/performance risk of the system. Techniques used in performing a cost-benefit analysis on dormant systems are discussed. Techniques explained include: break-even analysis, warranty cost recovery percent, mission reliability calculation and expected number of failures, and sensitivity analysis. The intent is to provide an approach to dormant system warranty analysis which is required by applicable regulations concerning weapon system warranties.<
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