Optimal replacement policy for a deteriorating system with increasing repair times

This paper considers an optimal maintenance policy for a practical and reparable deteriorating system subject to random shocks. Modeling the repair time by a geometric process and the failure mechanism by a generalized delta-shock process, we develop an explicit expression of the long-term average cost per time unit for the system under a threshold-type replacement policy. Based on this average cost function, we propose a finite search algorithm to locate the optimal replacement policy N* to minimize the average cost rate. We further prove that the optimal policy N* is unique and present some numerical examples. Many practical systems fit the model developed in this paper. (C) 2013 Elsevier Inc. All rights reserved.

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