Determining the control limit policy in a replacement model with linear restoration

David Perry; M. J.M. Posner

doi:10.1016/0167-6377(91)90006-B

Determining the control limit policy in a replacement model with linear restoration

David Perry, M. J.M. Posner

Department of Statistics

Research output: Contribution to journal › Article › peer-review

Abstract

We consider a replacement model for an additive damage process with linear restoration as outlined in a previous paper by M.J.M. Posner and D. Zuckerman. It was shown there that under certain assumptions a control limit policy is optimal for both discounted and undiscounted cost cases. However, they were only able to find the control limit by binary search. In this paper, we extend that analysis to determine the control limit analytically through a novel application of the martingale stopping theorem, and discuss its usefulness in cost minimization.

Original language	English
Pages (from-to)	335-341
Number of pages	7
Journal	Operations Research Letters
Volume	10
Issue number	6
DOIs	https://doi.org/10.1016/0167-6377(91)90006-B
State	Published - Aug 1991

Bibliographical note

Funding Information:
The financial support of the Natural Sciences and Engineering Research Council of Canada under grant A4374 is gratefully acknowledged.

Keywords

additive damage
control limit policy
linear restoration rate
martingale stopping theorem
replacement model

ASJC Scopus subject areas

Software
Management Science and Operations Research
Industrial and Manufacturing Engineering
Applied Mathematics

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10.1016/0167-6377(91)90006-B

Cite this

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AB - We consider a replacement model for an additive damage process with linear restoration as outlined in a previous paper by M.J.M. Posner and D. Zuckerman. It was shown there that under certain assumptions a control limit policy is optimal for both discounted and undiscounted cost cases. However, they were only able to find the control limit by binary search. In this paper, we extend that analysis to determine the control limit analytically through a novel application of the martingale stopping theorem, and discuss its usefulness in cost minimization.

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KW - control limit policy

KW - linear restoration rate

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Determining the control limit policy in a replacement model with linear restoration

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

Access to Document

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