A maintenance optimization model for a second hand stochastically deteriorating system under different operating environments

This paper deals with a maintenance optimization problem for a second hand system. The system is purchased from a second hand market, upgraded and then moved to operate under a more severe operating environment than the initial one. The system degrades stochastically and its degradation process is impacted by the operating environment where it evolves. The present paper investigates the relationship between upgrade decisions, initial acquisition age together with the subsequent maintenance costs incurred during the system second life. A mathematical model for the joint determination of the optimal upgrade level, and optimal maintenance policy is proposed. A numerical example is provided to illustrate the validity of the model.