Periodic replacement policies with shortage and excess costs

Xufeng Zhao (), Mingchih Chen () and Toshio Nakagawa ()
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Xufeng Zhao: Nanjing University of Aeronautics and Astronautics
Mingchih Chen: Fu Jen Catholic University
Toshio Nakagawa: Aichi Institute of Technology

Annals of Operations Research, 2022, vol. 311, issue 1, No 29, 469-487

Abstract: Abstract It has been proposed that if replacement time is planned too early prior to failure, a waste of operation cost, i.e., excess costs, would incur because the system might run for an additional period of time to complete critical operations, and if replacement time is too late after failure, a great failure cost, i.e., shortage cost, is incurred due to the delay in time of the carelessly scheduled replacement. In order to make the preventive replacement policies perform in a more general way, the above two variable types of costs are taken into considerations for periodic replacement policies in this paper. We firstly take up a standard model in which the unit is replaced preventively at periodic times. Secondly, the modeling approaches of whichever occurs first and last are applied into periodic and random models, and replacement first and last policies are discussed to find optimum periodic replacement times for a random working time. Furthermore, optimum working numbers are obtained for the extended models. We give analytical discussions of the above replacement policies, and finally, numerical examples are illustrated.

Keywords: Periodic replacement; Replacement last; Shortage cost; Random failure; Working numbers (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s10479-020-03566-z

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