| Article ID: | iaor19971785 |
| Country: | Netherlands |
| Volume: | 73 |
| Issue: | 3 |
| Start Page Number: | 472 |
| End Page Number: | 479 |
| Publication Date: | Mar 1994 |
| Journal: | European Journal of Operational Research |
| Authors: | Stadje W. |
For a system which is subject to i.i.d. cumulative shocks and which breaks down after an unknown random amount of damage is exceeded, the paper considers the problem of when to replace the system optimally. Assuming a natural loss function, it finds an optimal stopping time. Several examples are presented.