It is common knowledge that a manufacturer does not produce perfect items all the time, with a certain percentage of products being of non-conforming quality. These non-conforming items may be reworked at a cost or sold at reduced price. Nowadays, most branded products are sold in huge quantities with free minimal repair warranty. Within the warranty period, it is found that the failure process of a conforming product follows a nonhomogeneous pattern with a certain failure rate function, whereas the failure process of a non-conforming product follows a non-homogeneous pattern with a different failure rate function. In a real situation, the probability of failure of a non-conforming product is greater than that of a conforming product.