Optimal Trivariate Replacement Policies for a Deteriorating System

Abstract HeIn this paper, three replacement policies for a deteriorating system are studied. Assume that the system after repair is not as good as new. This paper proposes two basic replacement policies and one co-policy in extending the general bivariate replacement policy for such a deteriorating system. The objective of our study is to determine the optimal replacement policies such that the expected cost rates are minimized. The explicit expressions of the expected cost rates are derived, and the corresponding optimal policies can be studied and determined numerically. Our model is a generalization of several traditional models in bivariate replacement literature. Finally, a numerical example is presented for illustrating the theoretical results.

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