Optimal Replacement and Inspection of Stochastically Failing Equipment

Dale Weldeau Jorgenson, Roy Radner

Expert InsightsPublished 1960

An investigation of the structure of optimal policies for replacement and inspection of stochastically failing equipment. Preparedness-type models of single-part equipment are used in an attempt to maximize the proportion of the time that the system is in a good, ready state. It is found that optimal replacement policies call for periodic replacement and that the optimal period is easily computed. In the case of equipment with several parts, there arises the possibility of opportunistic maintenance in order to take advantage of "economies of scale" in maintenance actions. In such cases, serious analytical difficulties are encountered, and optimal policies are shown to be too complicated for practical use.

Document Details

  • Copyright: RAND Corporation
  • Availability: Web Only
  • Year: 1960
  • Pages: 39
  • Document Number: P-2074

Citation

Chicago Manual of Style

Jorgenson, Dale Weldeau and Roy Radner, Optimal Replacement and Inspection of Stochastically Failing Equipment. Santa Monica, CA: RAND Corporation, 1960. https://www.rand.org/pubs/papers/P2074.html.
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