Optimality of randomized strategies in a Markovian replacement model

Peter Bruns

Mathematical Methods of Operations Research, 2003, vol. 56, issue 3, 499 pages

Abstract: We study a replacement system with discrete-time Markovian deterioration and finite state space {0, …,N}. State 0 stands for a new system, and the larger the state the worse the condition of the system with N as the failure state. We impose the condition that the long-term fraction of replacements in state N should not be larger than some fixed number. We prove that a generalized control-limit policy maximizes the expected time between two successive replacements and we explain explicitly how to derive this (randomized) optimal policy. Some numerical examples are given. Copyright Springer-Verlag Berlin Heidelberg 2003

Keywords: 1991 Mathematics Subject Classification: 93E20; 90B25; Key words and phrases: replacement system; inspection; maintenance; average cost; generalized control-limit policy (search for similar items in EconPapers)
Date: 2003
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DOI: 10.1007/s001860200236

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