A periodical replacement model based on cumulative repair-cost limit

  • Authors:

  • Min-Tsai Lai

  • Affiliations:

  • Department of Business Administration, Southern Taiwan University of Technology, No.1, Nan-Tai street, Yung-Kung City 710, Tainan County, Taiwan, Republic of China

  • Venue:
  • Applied Stochastic Models in Business and Industry
  • Year:
  • 2007

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Abstract

This paper considers a periodical replacement model based on acumulative repair-cost limit, whose concept uses the information ofall repair costs to decide whether the system is repaired orreplaced. The failures of the system can be divided into two types.One is minor failure that is assumed to be corrected by minimalrepair, while the other is serious failure where the system isdamaged completely. When a minor failure occurs, the correspondingrepair cost is evaluated and minimal repair is then executed ifthis accumulated repair cost is less than a pre-determined limitL, otherwise, the system is replaced by a new one. Thesystem is also replaced at scheduled time T or at seriousfailure. Long-run expected cost per unit time is formulated and theoptimal period T* minimizing that cost is also verified tobe finite and unique under some specific conditions. Copyright© 2007 John Wiley & Sons, Ltd.