Analysis of a single-facility reliability system with a compound poisson shock process and a constant procurement lead time

Abstract

This thesis deals with a single-facility reliability system with a discretevalued compound Poisson shock process and a constant procurement lead time. A cost is associated with each replacement, and an additional penalty cost is incurred at each failure in service. Thence, it is presumed more beneficial by replacing such systems before failure. It is assumed that the cumulative damage is observable by the controller. Then, the system is controlled based on a cumulative damage replacement policy. For systems having such property, the optimal order level which minimizes the long-run expected average cost is derived.