Warranty cost analysis: non‐zero repair time

The main focus of this study is on the modelling of the warranty claims and evaluating the warranty expenses. The cost of each warranty claim depends on the non‐zero length of the repair time. Alternating renewal process is employed to model the operating and repair times. New results for alternating renewal process in finite horizon are derived. They are used to evaluate the warranty costs over the warranty period under non‐renewing free replacement policy and over the life cycle of the product. Examples are provided to illustrate the ideas.