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Termination versus operation extension for degrading systems

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  • Maxim Finkelstein
  • Ji Hwan Cha
  • Amy Langston

Abstract

Optimal cost-wise termination of operation for degrading engineering systems is considered that maximizes the expected profit for the infinite horizon. Termination reduces probability of the future failure that usually results in substantial loss. The cases of non-repairable and minimally repairable systems are discussed. The black-box scenario without additional information on stochastic process of degradation and that with additional information are considered. The novel sequential optimal inspection policy is described. It is proved that the termination time can be postponed in an optimal way if the degradation observed at inspection is smaller than the defined level. The developed approach allows for optimal usage of system’s “resource.†The detailed numerical examples illustrate the findings.

Suggested Citation

  • Maxim Finkelstein & Ji Hwan Cha & Amy Langston, 2023. "Termination versus operation extension for degrading systems," Journal of Risk and Reliability, , vol. 237(6), pages 1175-1185, December.
    • Handle: RePEc:sae:risrel:v:237:y:2023:i:6:p:1175-1185
    DOI: 10.1177/1748006X221116709
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    References listed on IDEAS

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