Article ID: | iaor19951465 |
Country: | Netherlands |
Volume: | 15 |
Issue: | 5 |
Start Page Number: | 237 |
End Page Number: | 239 |
Publication Date: | Jun 1994 |
Journal: | Operations Research Letters |
Authors: | Lee Eui Yong, Lee Jiyeon |
A Markovian stochastic model for a system subject to random shocks is considered. Each shock arriving according to a Poisson process decreases the state of the system by a random amount. A repairman arriving according to another Poisson process repairs the system only if the state is below a threshold. Costs are assigned to each visit of the repairman, to each repair, and to the system being in bad states below the threshold. It is shown that there exists a unique arrival rate of the repairman which minimizes the expected long-run average cost.