Optimal replacement policies with continuously varying observable damage

F. A. Attia and P. J. Brockwell

Stochastic Processes and their Applications, 1984, vol. 18, issue 1, 113-126

Abstract: A system is subject to random failure with failure rate k(Xt) dependent upon the level Xt of accumulated damage at time t. Given the replacement cost C and the additional cost K for replacement after failure, an optimum level of damage at which replacement should be made is investigated when the damage process is (a) a Wiener process with drift, (b) the integral of a Markov chain and (c) a linearly increasing deterministic process. The solution of (c) is used to derive approximations for cases (a) and (b) when the damage process is 'nearly deterministic'.

Keywords: optimal; replacement; policy; Dynkin's; lemma; Markov; process; with; killing; Wiener; process; generator; integral; of; a; Markov; chain (search for similar items in EconPapers)
Date: 1984
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/0304-4149(84)90165-0
Full text for ScienceDirect subscribers only

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:eee:spapps:v:18:y:1984:i:1:p:113-126

Ordering information: This journal article can be ordered from
http://http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

Access Statistics for this article

Stochastic Processes and their Applications is currently edited by T. Mikosch

More articles in Stochastic Processes and their Applications from Elsevier
Bibliographic data for series maintained by Catherine Liu ().