Optimal strategies for price, warranty length, and production rate of a new product with learning production cost

This study investigates optimal strategies for price, warranty length, andproduction rate of a new product in which both static markets for non-durable and dynamicmarkets for durable products are involved. the mathematical model incorporates boththe demand and the cost functions including production, warranty length, and inventorycosts. using the maximum principle approach, the optimal strategies and interactionsamong price, warranty length, and production rate in both markets are analyzed usingsome propositions. the analysis shows that to maximize prots in all cases, the price, thewarranty length, and the production rate all must go up simultaneously, or one of themmust increase and the other two must decrease concurrently