Article ID: | iaor20052471 |
Country: | France |
Volume: | 34 |
Issue: | 2 |
Start Page Number: | 145 |
End Page Number: | 154 |
Publication Date: | Apr 2000 |
Journal: | RAIRO Operations Research |
Authors: | Sandoh Hiroaki, Iskandar Bermawi P. |
Keywords: | programming: dynamic |
The present study proposes an extended opportunity-based age replacement policy where opportunities occur according to a Poisson process. When the age, x of the system satisfies x < S for a prespecified value S, a corrective replacement is conducted if the objective system fails. In case x satisfies for another prespecified value T, we take an opportunity to preventively replace the system by a new one with probability p, and do not take the opportunity with probability 1-p. At the moment x reaches T, a preventive replacement is executed independently of opportunities. The long-term average cost of the proposed policy is formulated. The conditions under which optimal values for S and T exist for a prespecified value of T and S, respectively, are then clarified. Numerical examples are also presented to illustrate the theoretical underpinnings of the proposed replacement policy formulation.