Optimal strategies for a replacement model

P.B. Bruns

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    We examine a replacement system with discrete-time Markovian deterioration and finite state space $\{0,\ldots,N\}$. State 0 stands for a new system, and the higher the state the worse the system; a system in state $N$ is considered to be in a {\it bad state}. We impose the condition that the fraction of replacements in state $N$ should not be larger than some fixed number. We prove that a generalized control limit policy maximizes the expected time between two successive replacements and we explain explicitly how to derive this optimal policy. Some numerical examples are given.
    Original languageUndefined
    Place of PublicationEnschede
    PublisherUniversity of Twente
    Publication statusPublished - 2000

    Publication series

    PublisherDepartment of Applied Mathematics, University of Twente
    ISSN (Print)0169-2690


    • EWI-3338
    • MSC-90B25
    • IR-65706
    • MSC-93E20

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