A simple ordering policy with linear lifetime for a unit

Abstract

In this paper optimum ordering policies of a one-unit system where each failed unit is scrapped and each space is only provided after a lead time by an order with a deterministic linear lifetime for the unit is considered. The optimum ordering policy minimizing the expected cost per unit time in the steady state is discussed by introducing the two types of constant lead times along with ordering costs and downtime cost. The problem concludes with a numerical example minimizing the expected cost function.