The probability distribution of maintenance cost of a system affected by the gamma process of degradation: Finite time solution

Tianjin Cheng, Mahesh D. Pandey and J.A.M. van der Weide

Reliability Engineering and System Safety, 2012, vol. 108, issue C, 65-76

Abstract: The stochastic gamma process has been widely used to model uncertain degradation in engineering systems and structures. The optimization of the condition-based maintenance (CBM) policy is typically based on the minimization of the asymptotic cost rate. In the financial planning of a maintenance program, however, a more accurate prediction interval for the cost is needed for prudent decision making. The prediction interval cannot be estimated unless the probability distribution of cost is known. In this context, the asymptotic cost rate has a limited utility.

Keywords: Condition-based maintenance; Financial risk; Stochastic degradation; Gamma process; Characteristic function; Probability distribution; Maintenance optimization (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reensy:v:108:y:2012:i:c:p:65-76

DOI: 10.1016/j.ress.2012.06.005

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