Circular Economy, Recycling & Remanufacturing worked example

Warranty Reman Exposure at 3.22% expected reman warranty return rate: a worked example

What does the result look like when expected reman warranty return rate reaches 3.22%? The full calculation is worked below with real intermediate numbers. a team needs to review reman quality controls, warranty reserve, or containment needs for a reman SKU, warranty cohort, or field campaign

The inputs for this scenario

  • Remanufactured units under warranty: 6,200 units (unchanged)
  • Average warranty cost per failed reman unit: 96 $ / claim (unchanged)
  • Expected reman warranty return rate: 3.22 % (raised for this scenario; the documented default is 2.8)
  • Fixed containment, analysis, or campaign cost: 14,500 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable reman warranty claim exposure = remanufactured units in warranty population × expected warranty cost per failed reman unit × expected reman warranty return share) to the inputs above produces each figure below.
  • At this operating point the engine returns 33,665 expected reman warranty exposure for expected reman warranty exposure, the number this scenario is built around.
  • At this operating point the engine returns 5.43 $ / piece for warranty exposure per reman unit.
  • At this operating point the engine returns 19,165 $ for variable reman warranty claim exposure.
  • At this operating point the engine returns 14,500 $ for fixed containment, analysis, or campaign cost.

How this compares with the baseline

  • Against the tool's baseline example, where expected reman warranty return rate sits at 2.8% and the headline result is 31,166 expected reman warranty exposure, this scenario comes in 8.02% above the baseline at 33,665 expected reman warranty exposure.
  • A figure at this level is achievable when expected reman warranty return rate is genuinely sustained, not just peaked for a shift. It uses a single expected return rate and flat cost per claim; a bimodal failure pattern (early infant-mortality plus end-of-life wear-out) is better modeled with separate cohorts.

Results at a glance

  • Expected reman warranty exposure: 33,665 expected reman warranty exposure (headline result)
  • Warranty exposure per reman unit: 5.43 $ / piece
  • Variable reman warranty claim exposure: 19,165 $
  • Fixed containment, analysis, or campaign cost: 14,500 $

Run it with your numbers

  • Every input above is editable in the live Warranty Reman Exposure calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.