Optimal age-replacement model with age-dependent type of failure and random lead time based on a cumulative repair-cost limit policy

Yu-Hung Chien (), Chin-Chih Chang and Shey-Huei Sheu

Annals of Operations Research, 2010, vol. 181, issue 1, 723-744

Abstract: In this paper, we consider an age-replacement model with minimal repair based on a cumulative repair cost limit and random lead time for replacement delivery. A cumulative repair cost limit policy uses information about a system’s entire repair cost history to decide whether the system is repaired or replaced; a random lead time models delay in delivery of a replacement once it is ordered. A general cost model is developed for the average cost per unit time based on the stochastic behavior of the assumed system, reflecting the costs of both storing a spare and of system downtime. The optimal age for preventive replacement minimizing that cost rate is derived, its existence and uniqueness is shown, and structural properties are presented. Various special cases are included, and a numerical example is given for illustration. Because the framework and analysis are general, the proposed model extends several existing results. Copyright Springer Science+Business Media, LLC 2010

Keywords: Preventive replacement policy; Cumulative repair-cost limit; Minimal repair; Random lead time; Spare (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10479-009-0679-0 (text/html)
Access to full text is restricted to subscribers.

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:spr:annopr:v:181:y:2010:i:1:p:723-744:10.1007/s10479-009-0679-0

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

DOI: 10.1007/s10479-009-0679-0

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().