Abstract
In recent years, products such as household appliances will generally be warranted against their failures by the manufacturer for a specific period. It is important for the manufacturer of such products to estimate the cost for such warranty services and incorporate it in the budget. Under the general warranty, the manufacturer repairs or rectifies a filed system before its warranty period expires. However, in case the system fails several times during the warranty period, some manufacturers do not repairs systems for their second failures and their subsequent failures but replace them by a new one for fear of losing their credit. This study considers the cost analysis for such a warranty service where a manufacturer conducts a minimal repair for the first failure of a system and replaces it with a new one for its subsequent failures during the warranty period. We also compare this warranty service with a service where a minimal repair is carried out for the failed system only once and with a service under which minimal repairs are performed to the failed system before the warranty period expires.
