Article ID: | iaor20002655 |
Country: | United Kingdom |
Volume: | 35 |
Issue: | 4 |
Start Page Number: | 936 |
End Page Number: | 949 |
Publication Date: | Dec 1998 |
Journal: | Journal of Applied Probability |
Authors: | Cheng Kan, Makis Viliam, Jiang Xiaoyue |
Keywords: | optimization |
An optimal repair/replacement problem for a single-unit repairable system with minimal repair and random repair cost is considered. The existence of the optimal policy is established using results of the optimal stopping theory, and it is shown that the optimal policy is a ‘repair-cost-limit’ policy, that is, there is a series of repair-cost-limit functions