The warranty cost as a fraction of the sale price can vary from 1 – 10% depending on the product and the manufacturer. The total warranty costs for General Motors and Ford were over 4 billion dollars each for 2006. Through proper servicing logistics, these costs can be reduced. Murthy et al (2004) deals with warranty logistics. One particular issue is the choice between repair versus replace for a failed item under warranty. Murthy and Jack (2007a) deal with this topic