Abstract:

 A deteriorating repairable system with stochastic lead time is proposed. An ordering policy M and a replacement policy N based on the number of system failures form twodimension policy(N,M). The aim is to find out the optimal policy such that the average cost rate of the system is minimized. Assuming that the system life time follows Gamma distribution and the stochastic lead time follows an exponential distribution, an explicit expression of average cost rate was given by using renewal process. A numerical example was provides to illustrate the proposed model, and the sensitivities for the optimal policy with respect to parameters also analyzed.
 

Key words: deteriorating system; Gamma distribution; lead time; replacement policy