This paper presents a comprehensive framework for designing an optimal degradation-based burn-in and warranty policy for heterogeneous repairable products. The proposed model employs gamma degradation processes for multiple subpopulations and optimizes burn-in thresholds, durations, and usage rates in conjunction with a warranty period to maximize manufacturer benefits. The benefit function incorporates a demand function, considering how warranty policy influences consumer purchasing decisions and overall sales volume. The proposed model includes the general failure model, distinguishing between type I and type II failures. Type I failures are minor and correctable through minimal repairs, whereas type II failures are catastrophic and necessitate complete replacements. Additionally, the model considers selling products that fail to meet the burn-in criteria but remain useful for some applications. This adds an extra dimension of cost recovery and resource optimization. A detailed numerical analysis and a case study on high-power semiconductor lasers illustrate the model’s applicability and effectiveness. The findings highlight the significant impact of cost parameters, degradation thresholds, and subpopulation proportions on the optimal policy. This research provides valuable insights for manufacturers, product managers, and engineers in optimizing burn-in processes and warranty policies to enhance product reliability, reduce costs, and improve customer satisfaction.

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