Abstract
In this paper, we study an extended warranty model under minimal repair-replacement warranty (MRRW) which is suggested by Park, Jung and Park (2013). Under MRRW policy, the manufacturer is responsible for providing the minimal repair-replacement services upon the system failures during the warranty period. And if the failure occurs during the extended warranty period, only the minimal repair is conducted. Following the expiration of extended warranty, the user is solely responsible for maintaining the system for a fixed length of time period and replaces the system at the end of such a maintenance period. During the maintenance period, only the minimally repair is given for each system failure. The main purpose of this article is to suggest the extended warranty and replacement model with MRRW. Given the cost structures incurred during the life cycle of the system, we formulate the expected cost and the expected length of life cycle to obtain the expected cost rate.