Efficiency consideration of generalized age replacement policy

Minjae Park, Ki Mun Jung, Jennifer Jae‐Young Kim and Dong Ho Park

Applied Stochastic Models in Business and Industry, 2019, vol. 35, issue 3, 671-680

Abstract: Under the generalized age replacement policy, the system is replaced either at the predetermined age or upon failure if its corresponding repair time exceeds the threshold, whichever comes first. In this paper, we investigate the optimal choice of the pre‐determined preventive replacement age for a nonwarranted system, which minimizes the expected cost rate during the life cycle of the system from the customer's perspective under certain cost structures. Furthermore, we discuss several properties of such a generalized age replacement policy in comparison with the traditional age replacement policy. An efficiency, which represents the fractional time that the system is on, is defined under the proposed generalized age replacement policy and its monotonicity properties are investigated as well. The main objective of this study is to investigate the advantageous features of the generalized age replacement policy over the traditional age replacement policy with regard to the availability of the repairable system. Assuming that the system deteriorates with age, we illustrate our proposed optimal policies numerically and observe the impact of relevant parameters on the optimal preventive replacement age.

Date: 2019
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https://doi.org/10.1002/asmb.2370

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Persistent link: https://EconPapers.repec.org/RePEc:wly:apsmbi:v:35:y:2019:i:3:p:671-680

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