Warranty Servicing with a Brown-Proschan Repair Option

Reducing warranty servicing costs are of great interest to product manufacturers or, sellers who are contractually bound to provide post-sales support, up to a specified warranty period, usually in the form of some remedial action that restores a failed item to a functioning condition. Here, in the spirit of Jack, Iskandar and Murthy (2009) strategy based on partitioning the effective warranty period into three intervals, we consider and analyze the cost of a new two-dimensional warranty servicing strategy, that probabilistically exercises a choice between a replacement and a minimal repair to rectify the first failure if any, in the middle interval. A numerical illustration of our analysis with Weibull failure model is included.