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Warranty has assumed an increasingly growing role in the commercial and industrial world as a contributory factor of
profitable investment. This role is crucially important to the sophisticated and expensive goods both for customer persuasion
and provision of a protective shield. The most significant aspect of the warranty from the viewpoints of both the manufacturer and
the salespeople, is the costs which will be demanded in the wake of warranty. Such costs will determine the policies and decisions upon which the manufacturer can offer the warranty to the
customer. In making a more helpful and profitable policy for the customer, the cost analysis may be more likely in the form of a
quantitative model.
The model formulation of the costs incurred on the ground of
the warranty compensation claim has intertwined with the modeling of the components of the warranty process as well as
acceptance of a series of assumptions which will be developed mainly in a bifurcation of one and two dimensional modeling as
required by varied policies.