Optimal replacement policy for a general geometric process model with δ-shock

Abstract

In this article, a general geometric process model with δ-shock for a deteriorating system and an improving system is studied. A system will fail as soon as a shock arrives with interarrival time being inside a real set. Assume that a replacement policy N is adopted by which the system will be replaced by a new, identical one at the time following the N-th failure. Then the optimal replacement policy N* for minimising the long-run average cost per unit time is determined analytically. Finally, the sensitivity analysis is studied.