A First-Passage Time Problem in Reliability Theory

Beichelt Frank
Additional contact information
Beichelt Frank: University of the Witwatersrand, School of Statistics and Actuarial Science, Private Bag 3, WITS 2050, Johannesburg, Republic of South Africa. 010frank@cosmos.wits.ac.za

Stochastics and Quality Control, 2001, vol. 16, issue 1, 65-73

Abstract: A common replacement policy for technical systems consists in replacing a system by a new one after its economic lifetime, i.e. at that moment, when its long-run maintenance cost rate is minimal. The strict application of the economic lifetime does not take into account individual deviations of maintenance cost rates of single systems from the average cost development. To avoid this disadvantage, paper [Beichelt, Economic Quality Control 12: 173-181, 1997] proposes the total repair cost limit replacement policy: The system is replaced as soon as its total repair cost reaches or exceeds a given level. In that paper, the repair cost development is modeled by functions of the Wiener process. Here the same policy is considered assuming a repair cost process with nondecreasing samples paths and given one-dimensional probability distribution. Examples show that applying the total repair cost limit replacement policy instead of the economic lifetime may lead to cost savings between 4% and 30%. Finally, it is illustrated how to include the reliability aspect into the policy.

Keywords: Total Repair Cost Limit; Economic Lifetime; Repair Cost Process; Maintenance Cost (search for similar items in EconPapers)
Date: 2001
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/EQC.2001.65 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:ecqcon:v:16:y:2001:i:1:p:65-73:n:8

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/eqc/html

DOI: 10.1515/EQC.2001.65

Access Statistics for this article

Stochastics and Quality Control is currently edited by George P. Yanev

More articles in Stochastics and Quality Control from De Gruyter
Bibliographic data for series maintained by Peter Golla ().