In this paper EOQ repair and waste disposal model with variable setup number n and m for production and repair, respectively, within some collection time interval is considered as an integer nonlinear program. The cost analysis is extended to the extreme waste disposal rates and it is shown that the pure strategy for either total repair or total waste disposal is dominant. Furthermore, the minimal cost function and the optimal solution for that integer program is characterized and optimal and approximate solutions are presented for several subclasses of the problem.