Optimal replacement in a system of n-machines with random horizon

Abstract

This paper considers a system consisting of independently operating n-machines, which follows a deterioration processes with an associated cost function. It is assumed that the system is observed at discrete time and the objective function is the total expected cost. Also, it is considered that the horizon of the problem is random. For this problem, a replacement optimal policy that minimize the operation cost of the system is provided. Besides, a numerical example through a program in Matlab is presented.