Abstract
AbstractThe paper considers a generalized discrete‐time order‐replacement model for a single unit system, which is subject to random failure when in operation. Two types of discrete randomized lead times are considered for a spare unit; one is for regular (preventive) order and another is for expedited (emergency) order. The model is formulated based on the discounted cost criterion. The underlying two‐dimensional optimization problem is reduced to a simple one‐dimensional one and then the optimal ordering policy for the spare unit is characterized under two extreme conditions: (i) unlimited inventory time and (ii) zero inventory time for the spare unit. A numerical example is used to determine the optimal spare‐ordering policy numerically and to examine the sensitivity of the model parameters.
Published Version
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