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Optimal number of minimal repairs before replacement based on a cumulative repair-cost limit policy
Authors:Chin-Chih Chang  Shey-Huei Sheu  Yen-Luan Chen
Affiliation:1. Department of Statistics and Informatics Science, Providence University, Taichung 433, Taiwan;2. Department of Industrial Management, National Taiwan University of Science and Technology, Taipei 106, Taiwan;3. Department of Marketing Management, Takming University of Science and Technology, Taipei 114, Taiwan
Abstract:In this paper, we consider a replacement model with minimal repair based on a cumulative repair-cost limit policy, where the information of all repair costs is used to decide whether the system is repaired or replaced. As a failure occurs, the system experiences one of the two types of failures: a type-I failure (repairable) with probability q, rectified by a minimal repair; or a type-II failure (non-repairable) with probability p (=1 − q) that calls for a replacement. Under such a policy, the system is replaced anticipatively at the nth type-I failure, or at the kth type-I failure (k < n) at which the accumulated repair cost exceeds the pre-determined threshold, or any type-II failure, whichever occurs first. The object of this paper is to find the optimal number of minimal repairs before replacement that minimizes the long-run expected cost per unit time of this polish. Our model is a generalization of several classical models in maintenance literature, and a numerical example is presented for illustration.
Keywords:Maintenance   Minimal repair   Replacement policy   Optimization   Cumulative repair-cost limit
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