Optimal replacement period of a two-unit system with failure rate interaction and external shocks

In this article, a periodical replacement model for a two-unit system which is both subjected to failure rate interaction and external shocks will be presented. Without external shocks, each unit 1, whenever it fails, will act as an interior shock to affect the failure rate of unit 2 and increase the failure rate of unit 2 to a certain degree, while each unit 2 failure causes unit 1 into instantaneous failure. Besides failure rate interaction between units, the system is also subjected to external shocks which can be divided into two types. Type A shock causes unit 1 into failure and then converts the damage of such a failure to unit 2, while type B shock makes the system total breakdown. All unit 1 failures are corrected by minimal repairs. The aim of this article is to derive the expected cost rate per unit time by introducing relative costs as a criterion of optimality, and then the optimal replacement period which minimizes that cost will be determined. A numerical example is given to illustrate the method.