Warranty Cost Analysis for a Two-dimensional System Using Copular Function

Purpose: This study aims to propose a novel method for constructing a warranty cost analysis model using copula functions. It explores the properties of selected copula models and applies them to fit two-dimensional warranty data, thereby enhancing the modeling of dependent failure behaviors.Methods: Copulas provide a flexible framework for modeling dependency structures among random variables with different marginal distributions. By employing copula functions, a joint probability distribution was formulated, which served as the foundation for developing a two-dimensional warranty cost model.Results: The proposed approach significantly improves the prediction accuracy of bivariate warranty claims by capturing complex inter-variable dependencies that traditional models fail to represent. This enhanced modeling capability allows for more reliable cost estimation and better-informed warranty management decisions.Conclusion: This study introduces a new methodology for constructing copula-based models tailored to two-dimensional reliability and warranty data. The proposed framework was validated using real warranty claim data from an automotive dealer, demonstrating its practical applicability and potential value in both academic and industrial settings.