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Readucing the risk of failure time in the support of industrial / commercial equipment and durable products is becoming increasingly important. This risk is the same for both sold and leasod equipment. Traditionally, improved support has meant, improvement in diagnosis, repair and spare part availability. These approaches to the product support activities, post sales services (PSS) and warranty servicing is not valid more.
In many cases, loaners, in reducing or eliminating failure time can be cost effective. This paper develop a model for trade off in decisions about loaners. So loan policies are discussed and the application of these policies is illustrated in warranty servicing.