Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
477762 | European Journal of Operational Research | 2007 | 8 Pages |
We consider a system which deteriorates with age and may experience a failure at any time instant. On failure, the system may be replaced or repaired. The repair can partially reset the failure intensity of the unit. Under a suitable cost structure it has been proved in the literature that the average-cost optimal policy is of control-limit type, i.e. it conducts a replacement if and only if, on the nth failure, the real age of the system is greater than or equal to a critical value. We develop an efficient special-purpose policy iteration algorithm that generates a sequence of improving control-limit policies. The value determination step of the algorithm is based on the embedding technique. There is strong numerical evidence that the algorithm converges to the optimal policy.