Optimal age-replacement model with minimal repair based on cumulative repair cost limit and random lead time

In this study, we consider an age-replacement model with minimal repair based on a cumulative repair cost limit and random lead time for replacement delivery. A cumulative repair cost limit policy uses information about a system´s entire repair cost history to decide whether the system is repaired or replaced; a random lead time models delay in delivery of a replacement once it is ordered. A general cost model is developed for the average cost per unit time based on the stochastic behavior of the assumed system, reflecting the costs of both storing a spare and of system downtime. The minimum-cost policy time is derived, its existence and uniqueness is shown, and structural properties are presented.