Abstract: A model is presented to find the optimal design of the
mixed renewable warranty policy for non-repairable Weibull life
products. The optimal design considers the conflict of interests
between the customer and the manufacturer: the customer interests
are longer full rebate coverage period and longer total warranty
coverage period, the manufacturer interests are lower warranty cost
and lower risk. The design factors are full rebate and total warranty
coverage periods. Results showed that mixed policy is better than full
rebate policy in terms of risk and total warranty coverage period in all
of the three bathtub regions. In addition, results showed that linear
policy is better than mixed policy in infant mortality and constant
failure regions while the mixed policy is better than linear policy in
ageing region of the model. Furthermore, the results showed that
using burn-in period for infant mortality products reduces warranty
cost and risk.