A δ-shock model for reengineering of a repairable supply chain using quasi renewal process

Abstract

In this study, a quasi-renewal process model with δ-shock is analyzed for a degenerative repairable supply chain with a single supplier source. The supplier of the supply chain system encounters shocks due to crisis events and, as a consequence, tends to fail if the interarrival time between two successive shocks is less than a random threshold. The non negligible repair time of the supplier and the random threshold time of shocks are modeled on a quasi renewal process while the shock arrivals are governed by a renewal process. The long-run average cost per unit time is derived by employing the reengineering strategy N, which is determined by the number of failures of the supplier. The optimal reengineering policy is obtained analytically by minimizing the long-run expected cost rate. Numerical illustrations and sensitivity analysis evidence the consideration of maintenance policy for a repairable supply chain to sustain its smooth running.