A profit assessment model for equipment inspection and replacement under renewing free replacement warranty policy

► We present a profit assessment model related to a service contract for non-self-announcing failure equipment. ► We express the total expected manufacturer's profit per time unit. ► We develop a numerical procedure to generate the inspection sequence and the corresponding profit. Manufacturer's profit per time unit decreases as the offered warranty period increases. ► An increase in equipment reliability reduces the frequency of inspections and extends the warranty.