A multi-criteria optimal replacement policy for a system subject to shocks

• Published in: Computers & industrial engineering Vol. 61; no. 4; pp. 1035 - 1043
• Main Authors: Chang, Chin-Chih, Sheu, Shey-Huei, Chen, Yen-Luan, Zhang, Zhe George
• Format: Journal Article
• Language: English
• Published: New York Elsevier Ltd 01.11.2011; Pergamon Press Inc
• Subjects: Cost engineering; Cumulative repair-cost limit; Failure; Mathematical analysis; Mathematical models; Minimal repair; Multiple criteria decision making; Optimal maintenance; Optimization; Policies; Repair; Repair & maintenance; Replacement policy; Studies; Uniqueness; Replacement policy; Optimal maintenance; Minimal repair; Cumulative repair-cost limit
• ISSN: 0360-8352; 1879-0550
• DOI: 10.1016/j.cie.2011.06.017

► We analyze a multi-criteria replacement policy for a system subject to shocks. ► We show the existence and the structural properties of the optimal replacement policy. ► The policy is based on number of minimal repair and system age for a given cumulative repair cost limit L. ► The model provides a general framework for analyzing the maintenance policies. A system is subject to shocks that arrive according to a non-homogeneous Poisson process. As these shocks occur, the system experiences one of two types of failures: a type-I failure (minor), rectified by a minimal repair; or a type-II failure (catastrophic) that calls for a replacement. In this study, we consider a multi-criteria replacement policy based on system age, nature of failure, and entire repair-cost history. Under such a policy, the system is replaced at planned life time T, or 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 limit, or at the first type-II failure, whichever occurs first. An optimal policy over the control parameters is studied analytically by showing its existence, uniqueness, and structural properties. This model is a generalization of several existing models in the literature. Some numerical examples are presented to show several useful insights.