Optimal strategies for a replacement model

P.B. Bruns

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Abstract

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 language Undefined Enschede University of Twente, Department of Applied Mathematics Published - 2000

Publication series

Name Department of Applied Mathematics, University of Twente 1518 0169-2690

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