In this paper, a cold standby repairable system consisting of two dissimilar components and one repairman is studied. When failures occur, the repair of both component 1 and component 2 are not ‘as good as new’. The consecutive operating times of component 1 after repair constitute a decreasing geometric process, while the repair times of component 1 are independent and identically distributed. For component 2, its failure is rectified by minimal repair, and the repair time is negligible. Component 1 has priority in use when both components are good. The replacement policy
N is based on the failure number of component 1. Under policy
N, we derive the explicit expression of the long-run average cost rate
C(
N) as well as the average number of repairs of component 2 before the system replaced. The optimal replacement policy
N*, which minimises the long-run average cost rate
C(
N), is obtained theoretically. If the failure rate
r(
t) of component 2 is increasing, the existence and uniqueness of the optimal policy
N* is also proved. Finally, a numerical example is given to validate the developed theoretical model. Some sensitivity analyses are provided to show the influence of some parameters, such as the costs for replacement and repair, and the parameters of the lifetime and repair time distributions of both components, to the optimal replacement policy
N* and corresponding average cost rate
C(
N*).
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