Basic optimality results for Bayesian group replacement policies

Authors:
Elmira Popova
Affiliations:
Graduate Program in Operations Research and Industrial Engineering, The University of Texas at Austin, 1 University Station C2200, Austin, TX 78712, USA
Venue:
Operations Research Letters
Year:
2004

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Abstract

The optimal structure of Bayesian group replacement policies for a parallel system of n items with exponential failure times and random failure parameter is presented. The paper contains a proof of the fact that it is optimal to observe the system only at failure times. For the case of two items operating in parallel the exact form of the policy is derived.