| Article ID: | iaor20102975 |
| Volume: | 37 |
| Issue: | 4 |
| Start Page Number: | 280 |
| End Page Number: | 284 |
| Publication Date: | Jul 2009 |
| Journal: | Operations Research Letters |
| Authors: | Maillart Lisa M, Kurt Murat |
| Keywords: | markov processes |
We establish the optimality of structured replacement policies for a periodically inspected system that fails silently whenever the cumulative number of shocks, or the magnitude of a single shock it has received, exceeds a corresponding threshold. Shocks arrive according to a Markov-modulated Poisson process which represents the (controllable or uncontrollable) environment.